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Resilience of Rural Development and Climate Change in Viet Nam

Technical Assistance Numbers: 7377, 8102, and 8592 Independent Evaluation: TE-69

Performance Evaluation Report March 2020

Resilience of Rural Development and Climate Change in Viet Nam

This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.

NOTE In this report, “$” refers to United States dollars.

The guidelines formally adopted by the Independent Evaluation Department on avoiding conflict of interest in its independent evaluations were observed in preparing this report. To the knowledge of the management of the Independent Evaluation Department, there were no conflicts of interest of the persons preparing, reviewing, or approving this report. In preparing any evaluation report, or by making any designation of or reference to a particular territory or geographic area in this document, the Independent Evaluation Department does not intend to make any judgments as to the legal or other status of any territory or area.

Director General Marvin Taylor-Dormond, Independent Evaluation Department (IED) Deputy Director General Véronique Salze-Lozac'h, IED Director Nathan Subramaniam, Sector and Project Division, IED Team leader Shimako Takahashi, Evaluation Specialist, IED Team members Franklin D. De Guzman, Senior Evaluation Officer, IED

Irene Garganta, Evaluation Analyst, IED

Abbreviations ADB – Asian Development Bank

APMB – Agriculture Projects Management Board

CPC – commune people’s committee CPMU – central project management unit

CPS – country partnership strategy

DARD – Department of Agriculture and Rural Development

DEM – digital elevation model

DONRE – Department of Natural Resources and Environment

FES – forest ecosystem service

FPDF – forest protection and development fund

GIS – geographical information system

IED – Independent Evaluation Department

IMHEN – Institute of Meteorology, Hydrology, and Environment

INDC – Intended Nationally Determined Contribution of Viet Nam

IWE – Institute for Water and Environment

M&E – monitoring and evaluation

MARD – Ministry of Agriculture and Rural Development

MONRE – Ministry of Natural Resources and Environment

O&M – operation and maintenance

PPC – provincial people’s committee PFES – payment for forest ecosystem service REDD+ – Reducing emissions from deforestation and forest degradation

and enhancing forest carbon stocks

TA – technical assistance

TCR – technical assistance completion report

TPER – technical assistance performance evaluation report

UNDP – United Nations Development Programme

VNFF – Viet Nam Forest Protection and Development Fund

Contents

Acknowledgments vii Basic Data ix Executive Summary xi Map xv

Chapter 1: Introduction 1 A. Evaluation Purpose, Scope, and Methodology 1 B. Technical Assistance Project Objectives 2 C. Technical Assistance Completion Reports 3 D. Structure of the Report 4

Chapter 2: Design and Implementation 5 A. Rationale 5 B. Time, Cost, Financing, and Implementation Arrangements 7 C. Consultants 9 D. Design Changes 10 E. Monitoring and Reporting Arrangements 11

Chapter 3: Performance Assessment 12 A. Relevance 12 B. Effectiveness 14 C. Efficiency 22 D. Sustainability 23

Chapter 4: Other Assessments 26 A. Development Impact 26 B. Performance of the Asian Development Bank 28 C. Performance of Executing and Implementing Agencies 29

Chapter 5: Overall Assessment, Lessons, Issues, and Recommendations 30 A. Overall Assessment 30 B. Lessons 30 C Issues 31 D. Recommendations 31 Appendixes 1. Summary Evaluation Findings of Individual Technical Assistance Projects 34 2. Implementation of the Payment for Forest Ecosystem Service Scheme by Project Provinces 37

Acknowledgments This report was prepared by the Independent Evaluation Department (IED) of the Asian Development Bank (ADB), led by Shimako Takahashi, with Irene I. Garganta and Franklin D. De Guzman as team members. The evaluation was supported by consultants, Nguyen Truong Son and Peter Smith, who provided valuable inputs and support. The evaluation was conducted under the supervision of Nathan Subramaniam, Director, Sector and Project Division, and under the overall guidance of Marvin Taylor-Dormond, Director General, IED. The evaluation team appreciates the support of the Government of Viet Nam, the Ministry of Natural Resources and Environment, and the Ministry of Agriculture and Rural Development for making the necessary preparations for the evaluation mission. The team wishes to express its sincere gratitude to the provincial governments of Bac Kan, Ca Mau, Kon Tum Lao Cai, and Thua Thien Hue for facilitating the field visits and supporting data collection. The team is grateful to ADB’s Viet Nam Resident Mission for providing project information and coordinating with the government for the mission. Comments received were considered and incorporated as deemed appropriate. The peer review comments by Garrett Kilroy and John Redwood III are also appreciated. IED retains full responsibility for the report.

Basic Data

Key Information TA 7377 TA 8102 TA 8592 Title Climate Change Impact

and Adaptation Study in the Mekong Delta

Promoting Climate Resilient Rural Infrastructure in the Northern Mountain Provinces

Improving Payment for Forest Ecosystem Service Implementation

Sector Agriculture and natural

resources Multisector

Agriculture, natural resources, and rural development

Subsector Irrigation, drainage, and flood protection

Irrigation, drainage, and flood protection; land-based natural resource management; agriculture and rural sector development; and road transport

Land-based natural resources management and forestry

Strategic Agenda/ Themes

Environmental sustainability, economic growth, and capacity development

Environmental sustainability, capacity development, and economic growth

Environmental sustainability

Executing agency Ministry of Environment and Natural Resources

Ministry of Agriculture and Rural Development

Ministry of Agriculture and Rural Development

Key Figures ($ million) TA 7377 TA 8102 TA 8592 Source of TA funds Climate Change Fund

and Australian TA Grant

Global Environment Facility (Special Climate

Change Fund)

Japan Fund for Poverty Reduction

Approved 1.30 2.00 1.50 Actual disbursed 1.25 1.75 1.43

Key Dates TA 7377 TA 8102 TA 8592 Board approval 11 Nov 2009 29 Jun 2012 16 Dec 2013 Effective Date 17 Sep 2010 9 Oct 2012 5 Sep 2014 Fielding of

consultants Nov 2010 2 Jan 2013 15 Sep 2014

Original completion 30 Apr 2011 31 Aug 2015 30 Apr 2016 Actual completion 30 Oct 2013 31 May 2017 31 Dec 2016 Original closing 30 Apr 2011 31 Aug 2015 30 Dec 2016 Actual closing 30 Jun 2014 25 Aug 2017 18 Jul 2017 TCR circulation 14 Jul 2014 10 Apr 2018 Mar 2018

TA = technical assistance, TCR = technical assistance completion report. Sources: Asian Development Bank Technical Assistance Reports and Technical Assistance Completion Reports.

Executive Summary

This report evaluates the performance of three technical assistance (TA) projects related to climate change in Viet Nam: (i) TA 7377: Climate Change Impact and Adaptation Study in the Mekong Delta; (ii) TA 8102: Promoting Climate Resilient Rural Infrastructure in the Northern Mountain Provinces; and (iii) TA 8592: Improving Payment for Forest Ecosystem Service Implementation. These projects sought to (i) improve the climate resilient capacity of related sectors and provincial authorities in the Mekong Delta; (ii) mainstream effective climate resilient measures for basic rural infrastructure into the rural infrastructure program of the Ministry of Agriculture and Rural Development (MARD); and (iii) improve the implementation of the payment for forest ecosystem service (PFES) scheme. The main selection criterion for each of the three projects was climate change impact assessment (TA 7377), adaptation (TA 8102), and mitigation (TA 8592). The evaluation has assessed the performance of the TA projects individually. The government of Viet Nam, in 2015, submitted an Intended Nationally Determined Contribution

of Viet Nam to the United Nations Framework Convention on Climate Change. This outlined its commitment to meet the Paris Agreement goals. Adaptation is a national priority for the government in the four key sectors of agriculture, construction, transport, and energy industry. However, the line agencies responsible for adaptation at the national and provincial levels require substantial capacity building to accomplish this task. TA 7377 was implemented from September 2010 to October 2013. The Asian Development Bank (ADB) provided $1,300,000 from the Climate Change Fund and the Australian TA Grant. The Ministry of Natural Resources and Environment (MONRE) was the executing agency, with the Institute of Meteorology, Hydrology, and Environment (IMHEN) as the focal point. The target project areas were Ca Mau and Kien Giang provinces. Implementing agencies were the provincial people’s committees.

This report evaluates the performance of three technical assistance (TA) projects in Viet Nam for the resilience of rural development and climate change, approved by the Asian Development Bank over 2009–2013: (i) TA 7377: Climate Change Impact and Adaptation Study in the Mekong Delta; (ii) TA 8102: Promoting Climate Resilient Rural Infrastructure in the Northern Mountain Provinces; and (iii) TA 8592: Improving Payment for Forest Ecosystem Service Implementation. The projects sought to (i) improve the climate resilient capacity of related sectors and provincial authorities in the Mekong Delta; (ii) mainstream effective climate resilient measures for basic rural infrastructure into the Ministry of Agriculture and Rural Development’s rural infrastructure program; and (iii) improve the implementation of the Payment for Forest Ecosystem Service scheme.

The TA projects are assessed as follows: (i) TA 7377 is less than successful, relevant, less than effective, less than efficient, and less than likely sustainable; (ii) TA 8102 is less than successful, relevant, less than effective, less than efficient, and less than likely sustainable; and (iii) TA 8592 is successful, highly relevant, effective, efficient, and most likely sustainable.

This evaluation offers the following lessons: (i) to ensure their feasibility, adaptation measures should be developed and implemented by individual provinces on the basis of their specific climatic conditions, disaster preparedness, and development needs across sectors; (ii) the involvement of local stakeholders early on is crucial to gain and maintain their ownership of project objectives and activities; and (iii) a long-term operation and maintenance implementation plan is vital to ensure the durability of basic rural infrastructure.

xii Resilience of Rural Development and Climate Change in Viet Nam

TA 8102 was implemented from October 2012 to May 2017. ADB provided $2,000,000 from the Special Climate Change Fund of the Global Environment Facility. The project was carried out jointly with the United Nations Development Programme (UNDP), which funded $1,400,000. Component 3 was implemented by ADB. The target project areas were Bac Kan, Son La, and Thai Nguyen provinces. The remaining four components were implemented by UNDP. MARD was the executing agency for both the ADB and UNDP components. The implementing agency was the central project management unit under MARD’s Agriculture Projects Management Board. TA 8592 was implemented from September 2014 to December 2016 in the three provinces of Kon Tum, Lao Cai, and Thua Thien Hue. ADB provided $1,500,000 from the Japan Fund for Poverty Reduction. MARD was the executing agency. The lead implementation agency was the Viet Nam Forest Protection and Development Fund. Key provincial authorities included forest protection and development funds (FPDFs), commune people’s committees, provincial Department of Agriculture and Rural Development (DARD), and provincial Department of Natural Resources and Environment (DONRE). The evaluation involved a desk review of the projects and a field mission to Viet Nam in August 2019. The mission (i) held discussions in Ha Noi with ADB project officers, officials of national government ministries, development partners, and former project consultants, and (ii) visited the five provinces of Bac Kan, Ca Mau, Kon Tum, Lao Cai, and Thua Thien Hue for discussions with provincial government agencies and communities.

Performance Assessment Relevance. The TA projects’ objectives are aligned with the government’s strategic direction set out in Viet Nam’s 2011–2020 Socio-Economic Development Strategy and National Strategy on Climate Change. They are also consistent with the operational priorities of ADB’s country partnership strategies and Strategy 2030. These projects were developed as a timely response to climate change. The project’s design of TA 7377 deserves credit for initiating regional development planning linked

with climate change resilience and bringing government attention to IMHEN, DONRE and provincial agencies. Considering the potential merits of linking the regional development planning initiative with climate change, TA 7377 is assessed relevant. The evaluation also considers TA 8102 relevant, given the value of its outputs, which demonstrated bioengineering techniques for rural infrastructure using local resources. The project goal of mainstreaming bioengineering techniques was unrealistic as it required a much greater commitment from MARD. The project underestimated the time required to develop guidelines and engineering design standards for MARD approval for mainstreaming. Given TA 8592 project’s strategic alignments, innovative features, and project design that facilitated collaboration among forestry stakeholders, TA 8592 is assessed highly relevant. Effectiveness. TA 7377 envisaged outcome was the development of sector and provincial authorities’ capacity to increase climate-resilience programs and projects to guide future development planning. However, inadequate coordination between IMHEN and the provincial governments resulted in the limited engagement of DONRE and DARD in project implementation and their lack of awareness of the project. The evaluation found no evidence that the project had helped to increase institutional capacity. Of the five expected outputs, only one was achieved (documentation of appropriate adaptation measures). None of the proposed projects was developed into actual adaptation measure activities. The remaining outputs were delivered but not achieved because they were not of a suitable quality. The project focused more on producing a series of report outputs than ensuring the quality of the outputs. Thus, the outcomes were not achieved. TA 7377 is assessed less than effective. TA 8102 project envisaged outcome was effective climate-resilience measures mainstreamed into MARD’s rural infrastructure program. Of the five expected outputs, only one (identification of climate change risks and vulnerabilities, and the potential for applying the measures for strengthening community resilience) was not achieved. The evaluation mission noted the widespread acknowledgement among provincial DARD and DONRE of the suitability and cost

Executive Summary xiii

effectiveness of the bioengineering approaches. However, the project did not engage the local authorities adequately for implementation and thus the techniques were not disseminated effectively. While the demonstration of bioengineering techniques was an initial step towards the mainstreaming goal, having only four sites was insufficient to develop design standards and regulations. In the absence of upscaling activities, it was difficult to prepare design standards or guidelines which are essential for MARD’s mainstreaming process. Compounded by MARD’s weak commitment, the mainstreaming has yet to be realized. TA 8102 is assessed less than effective. TA 8592 project’s intended outcome was that payment for forest ecosystem service would be appropriately assessed following PFES evaluation methodologies and integrated into the five-year PFES implementation plans of the three provinces. A PFES collection and disbursement system was adopted by the individual provinces and approved by the government. A nationwide approach to the geographical information system based forest monitoring has been rolled out. The project’s four outputs and outcome were substantially achieved, and it had potential transformative effects on other provinces. The project is assessed effective. Efficiency. TA 7377 experienced implementation delays, being completed about 2.5 years later than scheduled. Its activities were divided into parts A and B. Recruiting two consultants consecutively instead of in parallel, resulted in the implementation delay. Having two separate consultancies also led to the disruption of knowledge among the two parts and the inefficient transfer of the project to local governments. TA 8102 was extended twice and completed about 21 months later than scheduled. Cofinancing modalities with UNDP rendered a complex project management structure for separate implementation under ADB and UNDP. Multiple levels of review and approval procedures under MARD’s Agriculture Projects Management Board and the time taken by ADB to hire consultants contributed to the slow implementation. Given the foregoing, TA 7377 and TA 8102 are assessed less than efficient.

TA 8592 was completed largely as scheduled, and its implementation arrangements were robust and well-coordinated, allowing for the efficient use of resources. The project is assessed efficient. Sustainability. Commonly, TA 7377 and TA 8102 did not engage local institutions adequately. Most of the work was carried out by consultants under the supervision of the executing agencies: IMHEN for TA 7377 and MARD and UNDP for TA 8102. Under TA 7377, during part B activities, there was a very low level of awareness in provincial institutions of the products derived in part A. Under TA 8102, the engagement of provincial governments was also limited. This pattern resulted in limited capacity building of the local authorities and minimal potential for upscaling the techniques across the province. Although the provincial staff attended training workshops, they did not have the opportunity to gain hands-on experience of managing the demonstrations and upscaling their project experience. The two projects are assessed less than likely sustainable In contrast to the other two TA projects, the provincial authorities were adequately involved in both the project design and implementation. Their involvement contributed to demonstrating good practices for PFES implementation. The products under the project were practical and useful to expand the PFES program nationwide. This also led to a high degree of acceptance and capacity development including geographical information system monitoring. As a result, the economic evaluations of forest ecosystem service (FES) were integrated into the individual province’s 5-year PFES implementation plans (2016–2020) and were approved by the respective provincial people’s committees. The project had the government’s buy-in, the strong commitment of the provincial governments, the engagement of local communities (as FES payees), and the consensus of enterprises (as FES payers). TA 8592 is considered most likely sustainable.

Other Assessments Development impacts. The expected impact of TA 7377 was the development of physical and economic resilience to future climate change and variability. To accomplish this, the project should have strengthened the institutional capacity of

xiv Resilience of Rural Development and Climate Change in Viet Nam

provincial governments to develop adaptation measures, but this was not attained. The long-term impact of a regional project will depend on the determination of the government to propel a regional approach across sectors and the continued commitment of individual provinces to integrating climate adaptation measures in sectoral strategies and ensuring that those measures operate effectively at the provincial level. The impact of TA 7377 is assessed less than satisfactory. The expected impact of TA 8102 was the improved climate resilience of rural infrastructure. Using bioengineering in rural infrastructure proved to be feasible at an affordable cost; and operation and maintenance (O&M) can be conducted by the local communities if proper guidance is given and resources are secured. The mainstreaming of the bioengineering approach into MARD’s rural program could occur if regulations and design standards are set and approved by MARD. While the project outputs were delivered, the outcome was not achieved. Nonetheless, the project brought the attention of the provinces and communities to the value of locally available resources for strengthening basic rural infrastructure. If MARD moves forward with the mainstreaming in the foreseeable future, it can capitalize on the project by incorporating the techniques in other regional projects. The impact of TA 8102 is borderline satisfactory. The expected impact of TA 8592 was improved rural livelihoods and environmental quality through PFES implementation. Following the project, PFES implementation has been gradually expanded to other provinces. The development impacts have begun to materialize—increased PFES revenue and maintained forest condition. The good practices and experience gained through the project, including the actual products and transboundary management, are expected to continue to influence PFES nationwide. The impact of TA 8592 is satisfactory. ADB Performance TA 7377. The project responded in a timely manner to the evolving needs in the Mekong Delta region with respect to climate change impact assessment and its application to development planning across sectors. However,

the lack of coordination between the two parts of the project as well as between IMHEN and DONRE contributed to significant implementation delays. Overall, ADB should have been more committed to coordinating with MONRE to engage the provincial governments in project design and implementation. The intended outcome and outputs were not achieved. The impact was quite limited. ADB’s performance is considered less than satisfactory. TA 8102. The project design including the implementation arrangements was complex, impacted by the co-financing arrangement. More attention should have been paid to ensuring good coordination with UNDP and MARD as well as with the central and provincial governments. For ADB’s component, consultation between ADB and provincial stakeholders during implementation was adequate. Considering the real intention of the project and the wide acceptance of the bioengineering approach in the provinces. ADB’s performance is borderline satisfactory. TA 8592. The project’s provinces were scattered geographically across the country. ADB’s Viet Nam Resident Mission played a leading role in convening provincial stakeholders to implement the project and customizing it to local needs. ADB was flexible and responsive to the consultation requests and clarifications on project activities from the provincial governments. This enabled the provinces to develop a PFES scheme that is suitable for the specific needs and conditions of each province. Based on the project experience, the PFES monitoring system was developed and is being applied in the provinces. ADBs’ performance is satisfactory. Performance of Executing and Implementing Agencies TA 7377. Government ownership at national and provincial levels remains a critical concern for the project’s effectiveness and sustainability. More active cooperation was needed between MONRE and DONRE. As a result, enhancing provincial authorities’ capacities for climate resilience did not emerge. MONRE and IMHEN should have committed themselves to a greater role in coordination to ensure DONRE’s engagement. The performance of the executing and

Executive Summary xv

implementing agencies is assessed less than satisfactory. TA 8102. More active cooperation was needed between MARD and DARD. The intended outcome of mainstreaming bioengineering techniques in MARD’s program did not occur, partly because of the inadequate commitment of MARD to drive its internal process on design standards for the use of bioengineering. However, the efforts of the implementing agencies such as DARD should be recognized for continuous demonstration in four different sites, coping with site changes, and O&M implementation during the project. Placing more weight on the demonstration value of the project, the performance of the executing and implementing agencies is assessed borderline satisfactory. TA 8592. In the provinces, FPDF demonstrated strong ownership of project activities and facilitated coordination and cooperation among all stakeholders. The continuity of FPDF members and their full commitment have been important contributing factors to the project’s success. MARD and Viet Nam Forest Protection and Development Fund have consistently provided support for the project. They have been regularly engaged in capacity building and streamlining of the PFES system for wider application across the country. The performance of the executing and implementing agencies is assessed highly satisfactory. Overall Assessment The performance of the three TA projects differed significantly. Only TA 8592 is assessed successful, being highly relevant, effective, efficient, and most likely sustainable. TA 7377 and TA 8102 are both less than successful, being relevant, less than effective, less than efficient, and less than likely sustainable. Nevertheless, each project deserves credit for having innovative features to meet location-specific needs. With significant buy-in and commitment from both the national and provincial governments, the innovative practices and approaches introduced by the TA projects can be replicated, sustained, and scaled up after project completion. ADB can build on these initiatives to create new TA projects that can be scaled up and ensure sustainability.

Lessons, Issues, and Recommendations Lessons To ensure their feasibility, adaptation measures should be developed and implemented by individual provinces on the basis of their specific climatic conditions, disaster preparedness, and development needs across sectors. Analysis and assessment of climate change impacts alone are insufficient for the development of effective adaptation measures. These have to be based on province-specific data and a high-quality analysis. In addition, climate change adaptation projects should be geared toward taking a regional approach and involve multisector planning. Taking advantage of the experience of TA projects requires a wider uptake of their outputs in other provinces and sectors in support of the country’s resilience to climate change. The involvement of local stakeholders early on is crucial to gain and maintain their ownership of project objectives and activities. It is important for project design to ensure the substantial inclusion of local government agencies in project management. Thus, project design should allow for their active participation in both preparation and implementation. The engagement of local stakeholders in project design also contributes to enhanced institutional capacity and the achievement of better performance. A long-term O&M implementation plan is vital to ensure the durability of basic rural infrastructure. Prior to project completion, it is important to secure O&M resources and agreement among governments on O&M implementation arrangements. O&M measures for basic rural infrastructure should be instituted at the local level in order to engage local governments continuously in maintaining project assets. This also allows local communities to make use of their project experience and continue with regular monitoring of forest health and the condition of rural infrastructure. The continuous engagement of local governments and beneficiaries in O&M is only possible when adequate capacity and resources for this purpose are available, and again this has to be considered at the design stage.

xvi Resilience of Rural Development and Climate Change in Viet Nam

Issues The inadequate commitment of MARD impeded the mainstreaming of bioengineering techniques in MARD’s rural infrastructure program. For the mainstreaming to occur, design specifications and standards should have been developed, together with guidelines on when to use bioengineering techniques and for what types of basic rural infrastructure. However, efforts to mainstream the techniques did not take off during the project. More pilot demonstration subprojects under varying conditions are needed so that valid standards of bioengineering in basic rural infrastructure can be developed and replication can be undertaken. Enhancing government capacities is a long-term process that requires considerable resources and government commitment. At the design stage, no long-term plan was developed to determine how project outputs would be maintained and scaled up. TA 7377 and TA 8102 lacked a mechanism for the expanded application and upscaling of their outputs. In addition, the engagement of the provincial authorities in project activities was limited in the two projects. As a result, there was no uptake of the models, impact studies or potential adaptation measures by either ADB or national and provincial authorities. Recommendations ADB should consider the following recommendations when designing TA projects in the future: Ensure the involvement of local stakeholders early on in project preparation and management. This should help individual provinces to develop effective adaptation measures that suit their climatic conditions, disaster preparedness, and development needs. Such active engagement in

project management can be an effective way to strengthen local capacity. Wherever possible, TA projects should adopt a learning-by-doing approach for target provincial governments and local institutions. This should include arrangements for O&M both during and after project implementation. The impact of the potential long-term engagement of local governments should be considered in project design. This would provide an opportunity to discuss O&M funding preparations at the provincial level. Encourage MARD to move forward with the mainstreaming of bioengineering approaches in its programs. One way for ADB to do this would be to require future basic rural infrastructure projects to use green infrastructure elements including bioengineering approaches. Mechanisms and incentives are also needed to facilitate active coordination and information sharing between national and provincial governments. Climate change adaptation should be anchored in a multisector strategy. For this to occur, coordination among the Ministry of Planning and Investment, MARD, MONRE, and other key ministries, as well as with the provinces, should be strengthened. Include upscaling activities and a mechanism for knowledge dissemination in project design. Future projects should include upscaling elements at the design stage, such as having demonstrations at different sites, putting in place mechanisms for dissemination beyond the project sites, and developing new design standards for bioengineering. In order to promote project efficacy, it is important to plan for the uptake and scaling up of its outputs. To share project experience and disseminate demonstration practices effectively, communication plans need to be established upfront in project design and their implementation ensured at the provincial and local levels.

Hai Phong

Son LaDien Bien Phu

Lai Chau

Lao Cai

Ha Giang Cao Bang

Bac Kan

Lang Son

Yen Bai

Tuyen QuangThai Nguyen

Thai Binh

Ninh Binh

Thanh Hoa

Hoa Binh

Phu Ly

Hung Yen

Bac Giang

Ha Long

Vinh

Ha Tinh

Dong Hoi

Dong Ha

Hue

Da Nang

Quang Ngai

Tam Ky

Pleiku

Kon Tum

Quy Nhon

Tuy Hoa

Buon Ma Thuot

Da LatGia Nghia

Phan Thiet

Phan Rang-Thap Cham

Bien Hoa

Dong Xoai

Ho Chi Minh City

Vung TauMy Tho

Rach Gia

Long Xuyen

Can Tho

Vinh Long

Vi Thanh

Cao Lanh

Soc Trang

Tra Vinh

Ben Tre

Bac LieuCa Mau

Tan An

Thu Dau Mot

Tay Ninh

Viet Tri

Hai Duong

Nha Trang

Vinh Yen

Phu Quoc Island

HA NOI

Boundaries are not necessarily authoritative.

National Capital

Provincial Capital

National Road

Other Road

Railway

Provincial Boundary

International Boundary

Technical Assistance TA

Climate Change Impact and Adaptation Study in the Mekong Delta TA

Promoting Climate Resilient Rural Infrastructure in the Northern Mountain Provinces TA

Improving Payment for Forest Ecosystem Service Implementation TA

VIET NAM

RESILIENCE OF RURAL DEVELOPMENT

AND CLIMATE CHANGE IN VIET NAM

Kilometers

5 2

N

194004 19VIE ABV

This map was produced by the cartography unit of the Asian Development Bank.

The boundaries, colors, denominations, and any other information shown on this

map do not imply, on the part of the Asian Development Bank, any judgment on

the legal status of any territory, or any endorsement or acceptance of such

boundaries, colors, denominations, or information.

LAO CAI

THUA THIEN – HUE

BAC KAN

KON TUM

CA MAU

KIEN GIANG

SON LA

THAI NGUYEN

CHAPTER 1

Introduction 1. Viet Nam is particularly vulnerable to climate change.1 The country’s location and geographic features, with about 3,200 km of coastline and a diverse topography, have contributed to its various climate zones, rich biodiversity, landscapes, and ethnicity.2 Since the deltas of the Mekong and Red River are the most productive rice-growing areas, agriculture and natural resources remains an important sector for the country. Given that climate change is detrimental to this sector, adaption and mitigation measures need to be developed to improve Viet Nam’s rural infrastructure and strengthen agriculture production in order to cope with the varying climatic conditions and potential natural disasters.3 2. The Asian Development Bank (ADB) continues to support action to address climate change, because it is not just important for environmental sustainability but crucial for disaster risk management.4 The three technical assistance (TA) projects examined in this evaluation were designed to build climate and disaster resilience through climate impact assessments for regional development planning, the demonstration of bioengineering techniques for rural infrastructure, and an improved payment scheme for forest ecosystem service.

A. Evaluation Purpose, Scope, and Methodology

3. Evaluation purpose. This technical assistance performance evaluation report (TPER) was undertaken to independently assess the performance of the three TA projects that supported the sustainable use and conservation of natural resources to tackle climate change in Viet Nam. The findings and lessons of the TPER will feed into the thematic evaluation study on ADB’s support for climate change that the Independent Evaluation Department (IED) plans to prepare in 2021. 4. Evaluation scope. The three projects being assessed are: (i) TA 7377: Climate Change Impact and Adaptation Study in the Mekong Delta;5 (ii) TA 8102: Promoting Climate Resilient Rural Infrastructure in the Northern Mountain Provinces;6 and (iii) TA 8592: Improving Payment for Forest Ecosystem Service Implementation.7 The TA projects were designed to (i) improve the climate resilient capacity of related sectors and provincial authorities, (ii) mainstream effective climate resilience measures into the rural infrastructure program of the Ministry of Agriculture and Rural Development (MARD), and (iii) improve the implementation of the payment for forest ecosystem service (PFES) scheme. The primary focus of the three projects was on climate change impacts (TA 7377), adaptation (TA 8102), and mitigation (TA 8592). This TPER has assessed the performance of the TA projects individually.

1 ADB. 2016. Country Partnership Strategy: Viet Nam 2016–2020—fostering more inclusive and environmentally sustainable

growth. Manila. Linked document 1. 2 Viet Nam has seven climate zones: Northwest, Northeast, Red River Delta, North Central Coast, South Central Coast, Central

Highlands and the Mekong Delta. FAO. 2011. Climate Change Impacts on Agriculture in Vietnam. Hanoi. 3 Independent Evaluation Department. ADB. 2018. Sector-wide Evaluation. ADB Support for Agriculture, Natural Resources, and

Rural Development. Manila. 4 ADB. 2018 Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila. 5 ADB. 2009. Technical Assistance to Viet Nam for Climate Change Impact and Adaptation Study in the Mekong Delta. Manila. 6 ADB. 2012.Technical Assistance to Viet Nam for Promoting Climate Resilient Rural Infrastructure in the Northern Mountain

Provinces. Manila. 7 ADB. 2014. Technical Assistance to Viet Nam for Improving Payment for Forest Ecosystem Service Implementation. Manila.

2 Resilience of Rural Development and Climate Change in Viet Nam

5. The TPER has assessed to what extent ADB has contributed to the country goal of improving climate resilience at national and provincial levels. Evaluation questions included:

(i) Were these TA projects effective in developing adaptation and mitigation measures and mainstreaming them in development planning?

(ii) What are the innovative measures and practices introduced by the TA projects? What is the likelihood of replicating the innovations, practices, and approach under the TA projects to cope with climate change?

(iii) What is the likelihood that the innovations introduced by the TA projects will be scaled up by the government to strengthen climate resilience beyond the projects’ life?

6. Evaluation methodology. The evaluation is based on the evaluation criteria of relevance, effectiveness, efficiency, and sustainability, in accordance with ADB’s Guidelines for the Evaluation of Public Sector Operations.8 It examines the progress on the extent and sustainability of outcomes and institutional capacity development, the possible development impacts of the TA projects, and the performance of ADB and executing agencies in implementing them. 7. The evaluation evidence was gathered through: (i) a desk review of project documents, including TA reports, technical assistance completion reports (TCRs), consultant reports, and published reports and other deliverables under the projects; ADB analytical reports; IED evaluation studies; (ii) key informant interviews with ADB project officers, representatives and staff of implementing agencies, and development partners;9 and (iii) field visits and discussions with beneficiaries, local governments, and other stakeholders. 8. IED fielded an independent evaluation mission to Viet Nam in August 2019. The mission held discussions with officials of national government ministries, relevant development partners in Ha Noi, and ADB staff and consultants. It carried out field visits to five provinces: Bac Kan, Ca Mau, Kon Tum, Lao Cai, and Thua Thien Hue to meet with provincial government agencies and communities and to observe the project outputs. The five provinces were selected based on the representativeness of each TA project, the progress of activities, and the availability of resource persons.

B. Technical Assistance Project Objectives

9. ADB started to implement the three climate change TA projects in the early 2010s, with the common goal of building the resilience of rural development to climate change. The national implementing agencies were the Ministry of Natural Resources and Environment (MONRE) and MARD.10 A summary of the TA objectives is provided in Table 1.

8 ADB. 2016. Guidelines for the Evaluation of Public Sector Operations. Manila. 9 Development partners included: (i) German Corporation for International Cooperation (GIZ), (ii) United States Agency for

International Development (USAID), (iii) The United Nations Development Programme (UNDP), and (iv) World Bank. 10 In Viet Nam, these two government agencies are key players in tackling climate change as they are concerned with the sustainable

use and conservation of natural resources. MONRE oversees all climate change-related actions, while MARD is responsible for the forestry, fishery, and agriculture sectors.

Introduction 3

Table 1: Intended Impacts, Outcomes, and Components

TA 7377: Climate Change Impact and Adaptation Study in the

Mekong Delta

TA 8102: Promoting Climate Resilient Rural Infrastructure in the

Northern Mountain Provinces

TA 8592: Improving Payment for Forest Ecosystem Service

Implementation Impact Developed physical and economic resilience to future climate change and variability.

Impact Improved the climate resilience of rural infrastructure.

Impact Improved rural livelihoods and environmental quality.

Outcome Improved sector and provincial authorities’ capacity to increase climate-resilience programs, plans, policies, and projects to guide future development planning.

Outcome Effective climate-resilience measures mainstreamed into Ministry of Agriculture and Rural Development’s rural infrastructure program.

Outcome Ecosystem service values and payments processed following a consistent approach.

Outputs Climate change model outputs for future climatic changes

Documentation of effects of future climate conditions on natural, social, and economic systems

Documentation of appropriate climate change adaptation measures

Pilot projects of upscaled replication of TA outcomes

Institutional strengthening in future climate conditions and community awareness

Outputs Identification of low-cost climate-proofing measures suitable for rural infrastructure

Demonstration of appropriate climate change resilient techniques in the two provinces

Establishment of trained technical personnel on protection measures

Preparation of recommendations for integration of demonstrated approaches in trainings, standard design procedures, and contract specifications

Identification of risk and vulnerabilities and how to apply potential measures demonstrated to strengthen community resilience

Outputs Standardized economic evaluation of environmental services at the provincial level

Institutionalized mechanisms for payment for forest ecosystem service valuation, management, and distribution piloted

Capacity of national and provincial policymakers to value and integrate ecosystem services in economic development planning developed

Best practices and lessons captured and shared

TA = technical assistance. Sources: Asian Development Bank Technical Assistance reports.

C. Technical Assistance Completion Reports

10. TA 7377: Climate Change Impact and Adaptation Study in the Mekong Delta. The TCR rated it partly successful. The project was designed for implementation in two parts: (i) part A: Climate Change Prediction and Impact Assessment, to deliver outputs 1 and 2; and (ii) part B: Climate Change Adaptation and Planning, to deliver outputs 3, 4, and 5. Under part A, the project modeled climate change scenarios for 2030 and 2050 and produced good quality data and maps for the provinces, indicating where agriculture and livelihoods were vulnerable because of their exposure to saline intrusion and flooding. Under part B, output 3 (documentation of appropriate climate change adaptation measures) was delivered using a multi-criteria analysis design. The project shortlisted six future climate change adaptation projects. However, the quality of the technical approach was questionable. The project lacked detailed discussion involving climate resilience measures and did not specify how to engage national and provincial government counterparts in their medium-term planning process.11

11 ADB. 2014. Technical Assistance Completion Report: Climate Change Impact and Adaptation Study in the Mekong Delta. Manila.


11. TA 8102: Promoting Climate Resilient Rural Infrastructure in the Northern Mountain Provinces. The TCR rated the project successful; highly relevant, effective, less than efficient, and likely sustainable. It noted that the project achieved the delivery of all project outputs, demonstrating low-cost slope protection measures featuring bioengineering techniques. 12 However, the new bioengineering techniques were not mainstreamed. The project encountered implementation delays for various reasons including the demonstrations being located in three provinces, and internal bureaucratic procedures and inefficiencies within MARD.13 A key issue was how to mainstream bioengineering, as climate adaptation measures, into standard civil engineering practices. For this to happen, a project would need to involve (i) the adoption, promotion, and championing of bioengineering, and (ii) more demonstrations and testing by national and local agencies undertaking rural infrastructure development. 12. TA 8592: Improving Payment for Forest Ecosystem Service Implementation. The TCR rated the project successful, on the basis that the outcome of forest ecosystem service (FES) values and payments follow a consistent approach was achieved, as were the expected outputs: (i) pilot economic evaluations of the forest environment were conducted in three new sectors—aquaculture, industrial water supply, and tourism—at the provincial level; (ii) mechanisms for PFES valuation, management, and distribution were developed, piloted, and integrated into government guidelines and manuals; (iii) capacity building for PFES stakeholders and their collaboration were facilitated; and (iv) PFES awareness raising for residents and officials was conducted in the provinces and communication materials were developed. A lesson was that the guidelines and procedures developed under the project needed to be operationalized and institutionalized under the appropriate mechanism for valuation, pricing, and distribution of PFES benefits.14

D. Structure of the Report

13. This TA performance evaluation report has five chapters. This introduction is followed in chapter 2 by a summary of the design and implementation features of the TA projects. Chapter 3 provides an assessment of project performance based on the core evaluation criteria of relevance, effectiveness, efficiency, and sustainability. Chapter 4 assesses development impacts and the performances of ADB, executing agencies, and implementing agencies. The final chapter recaps the overall assessment, highlights issues and lessons, and provides recommendations.

12 Bioengineering is the application of engineering design and technology to living vegetation. 13 ADB. 2018. Technical Assistance Completion Report: Promoting Climate Resilient Rural Infrastructure in Northern Mountain

Provinces. Manila. 14 ADB. 2018. Technical Assistance Completion Report: Improving Payment for Forest Ecosystem Service Implementation. Manila

CHAPTER 2

Design and Implementation

14. This chapter provides information on (i) the rationale for the TA projects, (ii) implementation arrangements in terms of time, costs, financing, and executing and implementing agencies; and (iii) consultants engaged. It also summarizes the design and operational changes to the projects and arrangements for monitoring and reporting.

A. Rationale

15. Country context. Under the economic and political reform of Doi Moi launched in 1986, Viet Nam experienced rapid economic growth.15 Doi Moi transformed the country, enabling it to achieve lower middle-income status in 2010.16 Although Viet Nam has modernized its economy, agricultural production generated 16.3% of gross domestic product in 2018, with the agriculture, forestry, and fishing sector employing 21% of the labor force. 17 Rice is the main staple and much of the rice cultivation is concentrated in the Mekong Delta and Red River Delta.18 16. Viet Nam’s Socio-Economic Development Strategy for 2011–2020 laid out the need for environmental protection and green economic development, which would entail extensive investment in policies to manage and develop sustainable forestry.19 In 2011, the government approved the National Strategy on Climate Change as the first overarching document to make a cross-sectoral and comprehensive assessment of the country’s response to climate change, with the aim of increasing the country’s capacity and adaptability to climate change.20 This was also a crucial factor for the country to reach upper middle-income status and achieve its strong commitments to the Sustainable Development Goals, especially through implementing climate change adaptation and mitigation.

17. In 2015, the government submitted an Intended Nationally Determined Contribution of Viet Nam (INDC) to the United Nations Framework Convention on Climate Change. 21 This document, which outlined Viet Nam’s commitment to meet the Paris Agreement goals, stated that Viet Nam was carrying out climate change adaptation and mitigation in parallel. In terms of adaptation, three priority thematic actions for the period 2021-2030 are to: (i) respond proactively to disasters and improve climate monitoring; (ii) ensure social security; and (iii) respond to the rise in sea level and urban inundation. In terms of mitigation, the payment for forest ecosystem service plays a crucial role in managing sustainable

15 ADB. 2019. Asian Development Outlook 2019. Manila. Gross domestic product growth rate ranged from 6.2% in 2016 to 7.1%

in 2018. 16 ADB. 2016. Country Partnership Strategy: Viet Nam, 2016–2020 Fostering More Inclusive and Environmentally Sustainable

Growth. Manila. 17 By comparison, industry generated about 38 % of gross domestic product, and services generated 45.7 % (in 2018). ADB. 2019.

Key Indicators for Asia and the Pacific 2019. Manila. 18 FAO. County brief Viet Nam. http://www.fao.org/giews/countrybrief/country.jsp?code=VNM (accessed 10 September 2019);

https://think-asia.org/bitstream/handle/11540/4363/briefing_no.1_eng_final.pdf?sequence=1 19 Economica Vietnam. 2012. Viet Nam’s Socio-Economic Development Strategy for the period of 2011–2020. 20 The National Strategy on Climate Change has provided the foundation for other strategies.

http://www.chinhphu.vn/portal/page/portal/English/strategies/strategiesdetails?categoryId=30&articleId=10051283 (accessed 10 September 2019).

21 Intended Nationally Determined Contribution of Viet Nam. https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Viet%20Nam%20First/VIETNAM%27S%20INDC.pdf (accessed 27 August 2019).

http://www.fao.org/giews/countrybrief/country.jsp?code=VNM

https://think-asia.org/bitstream/handle/11540/4363/briefing_no.1_eng_final.pdf?sequence=1

http://www.chinhphu.vn/portal/page/portal/English/strategies/strategiesdetails?categoryId=30&articleId=10051283

https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Viet%20Nam%20First/VIETNAM%27S%20INDC.pdf


forest, enhancing ecosystem services and carbon sequestration, and conserving biodiversity while preserving the livelihoods of forest-dependent people. Also, the INDC listed “agriculture, natural ecosystems, biodiversity, water resources, public health and infrastructure; the Mekong Delta, the Red River Delta, the Central Coast; the poor, ethnic minorities” as the most vulnerable areas, regions, and people. 18. Climate change, specifically in terms of global warming, is connected with the greenhouse effects of atmospheric gases, principally carbon dioxide. Many of these gases are released through deforestation and forest degradation as a result of various natural and anthropogenic disturbances (e.g., typhoons, forest fires, logging, and tourism). Hence, actions involving forest management and reforestation serve climate change mitigation by reducing carbon emissions and absorbing atmospheric carbon. 22

Recognizing that forests play an important role in both climate change mitigation and adaptation, Viet Nam has identified forestry as a vital component in addressing climate change and ensuring ecological sustainability.23 It has therefore developed the following schemes:

(i) The PFES is a tool to safeguard and enhance the provision of ecosystem services. The government of Viet Nam legislated Decree 99 in 2010, as the overarching policy and legal framework for the development of the PFES program, which has two objectives: (i) to protect and restore degraded forests, and (ii) to provide livelihood opportunities for rural communities in remote areas that depend on timber and non-timber forest products for income and nutrition.24 Under the policy, FES users are required to make payment to FES providers, meaning payers and payees exist in the FES scheme. Following Decree 99, the government has issued two revised decrees: Decree 147 (2016)25 and Decree 156 (2018).26 Each of these further defined and clarified the process and identification of FES users and beneficiaries, and also updated the unit cost of the ecosystem service. Decree 156 has provided clarifications about the collection of revenues from additional industries to pay for ecosystem services, namely agriculture and tourism. Viet Nam was one of the first countries to pilot a PFES scheme that mandates conditional payments. Building on its pilot work on PFES and the monitoring and evaluation (M&E) system at the provincial level, the government has signaled its intent to scale it up into a national PFES system.

(ii) Reducing emissions from deforestation and forest degradation and enhancing forest carbon stocks (REDD+) is a global mechanism, developed by Parties to the United Nations Framework Convention on Climate Change, which generates financial incentives for developing countries to reduce rates of deforestation and forest degradation, and to enhance carbon stocks by conserving and sustainably managing forests. 27 Developing countries participating in the mechanism would receive results-based payments for results-based actions. Since 2009, Viet Nam’s forestry sector has been active and responsive to REDD+ initiatives.28 The role of REDD+ in climate change mitigation is acknowledged in the national strategy on climate change.29

22 Forests have a threefold role: as carbon pools, sources of carbon dioxide when they burn, and as carbon dioxide sinks. FAO.

http://www.fao.org/3/ac836e/AC836E03.htm (accessed 30 March 2019) 23 Related to ecosystem services, forests have multiple and complementary functions: production of goods; protection,

maintenance, and regulation of soil, water, and other ecosystem services; conservation of biodiversity; provision of socio-cultural services; and livelihood support and poverty alleviation.

24 ADB. 2014. Scaling up Payments for Forest Environmental Services in Viet Nam: Lessons and Insights from Quang Nam. Manila. 25 Decree 147; No. 147/2016/ND-CP Amending and supplementing a number of articles of the government’s decree No.

99/2010/ND-CP OF SEPTEMBER 24, 2010, on the policy on payment of the forest environment service charge. 26 Decree 156, No. 156/2018/ND-CP Decree detailing the implementation of some articles of the Law on Forestry. 27 Under REDD+, the mechanism goes beyond deforestation and forest degradation to include the role of conservation, ensuring

sustainable forest management, and improving forest carbon stocks. 28 REDD+ has been integrated into major forestry policies of the country: the Viet Nam Green Growth Strategy, the Viet Nam

Forestry Development Strategy for 2006-2020 and the National Target Program on Forest Protection and Development (CIFOR 2018. The potential of REDD+ to finance forestry sector in Vietnam).

29 The Prime Minister approved a national action plan as the basis for reducing greenhouse gas emissions from forestry. Center for International Forestry Research. 2013. Payments for forest environmental services in Vietnam: From policy to practice. Occasional Paper 93. Bogor, Indonesia.

http://www.fao.org/3/ac836e/AC836E03.htm

https://vanbanphapluat.co/decree-no-99-2010-nd-cp-on-the-policy-on-payment-for-forest-environment-service

Design and Implementation 7

19. Given the government’s strategic priorities and the measures described above, the three TA projects aimed to strengthen institutional capacities and local resilience to cope with climate change impacts. At the time of project formulation, the three projects were designed to conduct assessment studies, demonstrate adaptation measures, and improve mitigation measures, respectively. Climate change is a pervasive phenomenon that has complex temporal and spatial implications. It is also projected to have varied impacts across all sectors. These impacts and the resilience of each region and sector will be different. 20. Climate Change Impact and Adaptation Study in the Mekong Delta (TA 7377). This project was created to undertake a comprehensive study on the potential impact of climate change in the Mekong Delta region. It was designed to support the government’s National Target Program to Respond to Climate Change. The intended outcome was the improved capacity of sector and provincial authorities to increase the climate resilience of the region and ensure disaster management responses were well planned. In particular, effective adaptation measures had to be developed urgently and integrated into development planning to enhance the physical and economic climate resilience of the region. Under part A of the project, future climate conditions in the Mekong Delta region were assessed well as the effects of future climate scenarios on natural, social, and economic systems in the region (outputs 1 and 2). Under part B (outputs 3, 4 and 5), adaptation measures for the provinces and sectors were identified and pilot projects were designed, including a pre-feasibility analysis of the potential projects for scaling up. 21. Promoting Climate Resilient Rural Infrastructure in the Northern Mountain Provinces (TA 8102). The project, which aimed to demonstrate effective adaptation measures using locally available resources, introduced bioengineering approaches. Bioengineering is the use of vegetation as an engineering function in rural infrastructure and involves low-cost techniques. It is used to protect earth surfaces and structures, prevent soil erosion, slope failure, landslides in hilly areas, and ultimately to help minimize the occurrence of floods and flash floods. Also, bioengineering entails an element of carbon capture and thus can contribute to countering the anticipated impacts of climate change on rural infrastructure. Considering the potential of upscaling based on the versatility and wide applicability of bioengineering, it needed to be demonstrated on different kinds of rural infrastructure such as roads, river embankments, and irrigation structures, with the ultimate aim of mainstreaming it in the MARD rural infrastructure program.

22. Improving Payment for Forest Ecosystem Service Implementation (TA 8592). The project was designed to improve the implementation of the PFES scheme in the three provinces of Kon Tum, Lao Cai, and Thua Thien Hue. It aimed to support analytical studies and demonstrate how to standardize and integrate PFES, especially payment and accounting systems, into socioeconomic planning at the provincial level. The expected outputs included: (i) economic evaluation of environmental services standardized at the provincial level, (ii) mechanisms for PFES valuation, management, and distribution piloted and institutionalized, and (iii) increased capacity and awareness of national and provincial authorities and communities regarding ecosystem services.

B. Time, Cost, Financing, and Implementation Arrangements

23. Table 2 provides information on the total cost and the sources of financing for the projects considered in this evaluation. These projects had different executing agencies and implementation arrangements at the national and provincial levels.


Table 2: Total Cost and Financing Sources of the Technical Assistance Funds

Item

TA 7377: Climate Change Impact and Adaptation Study in

the Mekong Delta

TA 8102: Promoting Climate

Resilient Rural Infrastructure in the Northern Mountain

Provinces

TA 8592: Improving Payment for

Forest Ecosystem Service Implementation

Board approval

Effective date

Original completion date

Actual completion date Total cost (% disbursed) a

Source of TA funds

Executing Agency

11 November 2009

17 September 2010

30 April 2011

30 October 2013 $1,254,834 (96.5%) Climate Change Fund and Australian TA Grant Ministry of Environment and Natural Resources

29 June 2012

9 October 2012

31 August 2015

31 May 2017 $1,753,423 (87.7%) Global Environment Facility (Special Climate Change Fund) Ministry of Agriculture and Rural Development

16 December 2013

5 September 2014

30 April 2016

31 December 2016 $1,435,159 (95.7%) Japan Fund for Poverty Reduction Ministry of Agriculture and Rural Development

ADB = Asian Development Bank, TA = technical assistance. a Based on actual utilization from the TA Completion report. Source: Asian Development Bank database.

24. Climate Change Impact and Adaptation Study in the Mekong Delta (TA 7377). The project was implemented from September 2010 to October 2013. It was completed about 2.5 years after the original target date. The financing of $1,300,000 came from the Climate Change Fund and an Australian TA Grant. $1,254,834 was disbursed, meaning that about 96.5% of the approved amount was utilized (footnote 11). 25. MONRE was the executing agency, with the Institute of Meteorology, Hydrology, and Environment (IMHEN) as the focal point. The target project areas were Ca Mau and Kien Giang provinces in the Mekong Delta region. The implementing agencies were the provincial people’s committees (PPCs) of the two provinces. Each province established a steering committee chaired by the PPC and the provincial Department of Natural Resources and Environment (DONRE) and a project management unit led by the provincial Department of Agriculture and Rural Development (DARD). 26. Promoting Climate Resilient Rural Infrastructure in the Northern Mountain Provinces (TA 8102). The project was implemented from October 2012 to May 2017, representing a delay of 21 months. ADB provided $2,000,000 from the Special Climate Change Fund of the Global Environment Facility. $1,753,423 was disbursed, meaning that about 87.7% of the approved amount was utilized (footnote 13). The project was carried out jointly with the United Nations Development Programme (UNDP), which funded $1,400,000. 27. MARD was the executing agency. The implementing agency was the central project management unit (CPMU) under MARD’s Agriculture Projects Management Board (APMB). This TA project was initially planned as part of an ADB loan project, Sustainable Rural Infrastructure Development Project in Northern Mountain Provinces. 30 Because funding from the Global Environment Facility for the TA was not confirmed in time for the loan approval, the project became a stand-alone TA project. The project management office of MARD was in charge of both this TA and the loan project. The project target areas

30 ADB. 2010. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Socialist Republic of

Viet Nam for the Sustainable Rural Infrastructure Development Project in Northern Mountain Provinces. Manila.


were Bac Kan, Son La, and Thai Nguyen provinces. The CPMU was responsible for coordinating the field activities and institutional aspects among the government agencies, UNDP, and ADB. 28. Improving Payment for Forest Ecosystem Service Implementation (TA 8592). This TA project, implemented from September 2014 to December 2016, was funded by the Japan Fund for Poverty Reduction. $1,435,159 was disbursed, meaning that about 95.7% of the approved amount was utilized (footnote 14). 29. MARD was the executing agency, while the lead implementation agency was the Viet Nam Forest Protection and Development Fund (VNFF) under MARD in each province. Key provincial authorities included: forest protection and development funds (FPDFs) as the financial mechanism for PFES payments, commune people’s committees (CPCs), and the provincial DARD and DONRE. VNFF plays a major role in coordinating PFES in the country, providing guidelines for provincial planning, and developing programs for measuring environmental benefits and social performance.

C. Consultants

30. Climate Change Impact and Adaptation Study in the Mekong Delta (TA 7377). As mentioned in Chapter 1, the TA project was composed of two parts: (i) part A: Climate Change Prediction and Impact Assessment; and (ii) part B: Climate Change Adaptation and Planning (para. 10). At the preparation stage, it was envisaged that a team of six international consultants (totaling 19.5 person-months) and seven national consultants (totaling 25.5 person-months) would be required for part A. For part B, a team of three international consultants (totaling 13.5 person-months) and three national consultants (totaling 20.5 person-months) would be hired. The consulting packages for the two parts were awarded separately.31 Consultants were initially fielded in November 2010, about 2 months after the effective date. The consultants were engaged in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). The implementing agencies provided no information on the performance of the consultants and the TCR did not make an assessment (footnote 11). 31. Promoting Climate Resilient Rural Infrastructure in Northern Mountain Provinces (TA 8102). Planned consulting services were estimated at 80 person-months, consisting of international consulting services of 25 person-months and national consulting services of 55 person-months. ADB was to select a consulting firm for 23 international person-months and 55 national person-months alongside a full technical proposal and was to source individual consulting assignments for 2 person-months. International consultants were to be engaged for civil engineering, bioengineering, and geotechnical engineering; technical training; climate change adaptation; and social development. National consultants were to be hired for agricultural engineering, agronomy/forestry, technical training, civil engineering, meteorology/hydrology, gender, and indigenous peoples. Flexibility was introduced in the TA design by allowing the services of the consulting firm to be supplemented to meet unforeseen implementation problems. However, the additional allocation of 2 person-months of individual international consulting services was not to form part of the initial consulting services package to be tendered through quality- and cost-based selection (footnote 13). 32. According to the TCR, the total actual consulting services was 153.3 person-months, as against an original allocation of 108 person-months. However, the TCR did not indicate the reasons for the changes made in the planned allocation (80 person-months as planned vis-à-vis the 108 person-months in the TCR) nor did it explain the huge increase from 108.0 to 153.3 person-months. The TA was to be implemented over a 3-year period from September 2012 to August 2015. Initial fielding of consultants started in January 2013, almost 6 months after TA approval. The TCR did not indicate the actual completion of consulting services. However, it mentioned that consultant performance could only be assessed near the end of the TA project once the demonstration sites were completed. Based on this

31 While the TCR mentioned this, it did not provide the actual number of person-months of consulting services that were utilized.


information, it appears that consulting services ended only a few months before the TA’s actual closing in May 2017. The consultants were engaged in accordance with ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time). The implementing agencies assessed the performance of the consultants as satisfactory. 33. Improving Payment for Forest Ecosystem Service Implementation (TA 8592). Consulting services were to be used to draft the guidelines for practitioners at the provincial and national levels. A total of 10 person-months of international consulting services and 142 person-months of national consulting services were envisaged. Expertise included institutional-building capacity, natural resource management and livelihood development, environmental economics, geographic information system, communications and knowledge management, financial management, and gender and community development. A consulting firm was contracted to assist with project implementation. Initial consultant inputs comprised one international expert for 10 person-months and 14 national experts for 242 person-months. The consultant inputs were increased from 252 person-months to 279 person-months, partly due to minor changes (para. 35). The actual needs for aquaculture, industrial water supply, and tourism PFES studies and pilots were greater than expected. Two national consultants had to be replaced because of unsatisfactory performance and unavailability. Despite the replacement, the TCR assessed the performance of the consultants as satisfactory. The consultants were fielded on 15 September 2014, 10 days after the signing date. TA completion was delayed by 8 months from the original completion date, indicating that the consultants took slightly longer than initially expected to complete their work. The implementing agencies assessed the performance of the consultants as satisfactory (footnote 14).

D. Design Changes

34. There were no major changes in the design and scope of the projects. However, in TA 8102, a project site was changed during implementation. The project areas were planned in Bac Kan and Son La provinces, on two rural roads, one irrigation scheme, and one river embankment. The project would therefore have four demonstration sites featuring low-cost slope protection measures with bioengineering techniques. However, a demonstration site in Son La province was replaced by a site in Thai Nguyen province because of delays in starting up the Son La subproject. Nonetheless, the change did not impact the delivery of outputs. 35. One minor change to TA 8592 was to add one province (Ca Mau) under output 1. The addition was economic valuation of FES to assess the services of supplying water to aquaculture in the mangrove area of Ca Mau. The change required additional inputs, which helped to strengthen the project design:

(i) The assessment contributed to developing: (a) basic methodologies to evaluate the environmental services in aquaculture in a mangrove area that can be potentially applied to coastal areas in the central provinces of the country; (b) the independent PFES system, which was developed by the private sector (aquaculture industry) and linked to the international market of premium valued products, helps to conserve the forest and natural environment.32

(ii) The assessment supported the government’s review of the existing PFES legislation, the identification of gaps, and the development of a comprehensive PFES legislation system including integration of PFES in the new Forestry Law 2017, using inputs from PFES pilots.33

32 Greater Mekong Subregion Secretariat. How Mangrove-Friendly Shrimp Farming Is Protecting the Mekong Delta

https://greatermekong.org/how-mangrove-friendly-shrimp-farming-protecting-mekong-delta (accessed 10 September 2019). 33 VNFF. 2016. Assessment report. Ha Noi. http://www.gms-eoc.org/uploads/resources/1193/attachment/3-PFES-VNFF-Assessment-

Report.pdf (accessed 10 September 2019).

https://greatermekong.org/how-mangrove-friendly-shrimp-farming-protecting-mekong-delta

http://www.gms-eoc.org/uploads/resources/1193/attachment/3-PFES-VNFF-Assessment-Report.pdf

http://www.gms-eoc.org/uploads/resources/1193/attachment/3-PFES-VNFF-Assessment-Report.pdf


E. Monitoring and Reporting Arrangements

36. Climate Change Impact and Adaptation Study in the Mekong Delta (TA 7377). The project paid limited attention to the monitoring and reporting on project activities during implementation. The project’s design and monitoring framework did not identify data sources for monitoring and reporting on project performance. No information was available on the efforts made to monitor project progress. 37. Promoting Climate Resilient Rural Infrastructure in Northern Mountain Provinces (TA 8102). Monitoring was conducted during implementation by the project management office. The project’s design and monitoring framework identifies TA related reports—review, construction, training, recommendation, and assessment reports—and quarterly progress reports as data sources for monitoring and reporting on project performance. Monitoring and site inspection were conducted at demonstration sites to assess the progress and condition of each demonstration in maintaining slope stability and preventing erosion.34 MARD was to take over the demonstration sites at project completion. At the design stage, the Viet Nam Academy of Water Resources was to take responsibility for monitoring the demonstration measures after the project. In November 2013, the project discussed monitoring and this task was allocated to the Institute for Water and Environment (IWE) within the Academy of Water Resources. IWE attended TA training events and conducted monitoring of the demonstration sites, and an IWE staff member was a member of the Technical Core Group of the project. The mid-term review recommended identifying resources for IWE monitoring at the end of the project, but this did not happen. The final progress report mentioned that the CPMU would take action on this issue in 2016.35 This shows that the implementation arrangements for effective monitoring were neither settled nor in place by project completion. 38. Improving Payment for Forest Ecosystem Service Implementation (TA 8592). Since the project started, the FPDF staff have worked closely with the villagers to develop and implement monitoring and management plans. Provincial FPDF is responsible for M&E and engaged independent evaluators. Forest protection for FES provision was monitored to identify changes in forest coverage. Monitoring also was undertaken for other aspects of PFES implementation. For example, Thua Thien Hue province developed an M&E framework with economic, environment, and social indicators to measure (i) management and institutional performance (process establishment, level of access and application of legal documents, and participation in consultation and decision-making processes by FPDF, household groups, and communities), (ii) efficiency of mobilizing PFES revenues and use (economic indicator), (iii) levels of job creation, participation, and awareness raising (social), and (iv) changes in forest resources and FES contributions providing economic values (environment). Under the current PFES policy (Decree 156), M&E is stated as a government requirement Regarding the environmental and social performance of PFES, an independent valuation has been conducted. A set of indicators is being developing for rolling out M&E across provinces.

34 ADB. 2017. Socialist Republic of Viet Nam: Promoting Climate Resilient Rural Infrastructure in Northern Mountain Provinces.

Technical Assistance Consultant’s Report. Manila (TA 8102-VIE, p.10). 35 MARD and ADB. 2016. Progress Report No. 14 Quarterly progress report to June 2016. Ha Noi.

CHAPTER 3

Performance Assessment 39. This chapter assesses the projects’ performance based on four core criteria: (i) relevance to the development strategies of the government and ADB and to achieving the envisaged objectives; (ii) effectiveness of outcomes and outputs; (iii) efficiency of the utilization of resources; and (iv) sustainability of outcomes and outputs. The individual performances of the three TA projects against the evaluation core criteria are discussed in Appendix 1.

A. Relevance

1. Policy and Strategic Alignment

40. All three projects’ objectives were aligned with the strategic direction of the government of Viet Nam. First, Viet Nam’s 2011–2020 Socio-Economic Development Strategy indicates a comprehensive development orientation to develop agriculture and manage sustainable forestry. The National Strategy on Climate Change aims to increase the country’s capacity and adaptability to climate change toward a low-carbon and green growth economy. On top of that, the PFES project was strongly aligned with the priorities of the government in the overarching policy framework for the development of the PFES program. The TA was designed to assist in both improving the PFES program and developing new mechanisms and procedures that had been identified in national policies and legal decrees. In addition, Viet Nam’s forestry sector has been active in streamlining the PFES program and progressive in implementing REDD+ initiatives. 41. The projects’ objectives were aligned with ADB’s Strategy 2020, which indicated that ADB would help developing member countries move their economies to a low-carbon growth path.36 This would entail support to offset greenhouse gas emissions, arrest deforestation, and develop climate-proofing projects as part of disaster risk management. The projects were also consistent with the core priorities of ADB’s Strategy 2030, particularly for tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability (footnote 4).

42. The projects were also aligned with ADB’s country partnership strategies (CPSs) for Viet Nam. Environmental management was one of the three ADB strategic priorities in the CPS, 2007–2010.37 The CPS, 2012–2015 noted that focusing climate change responses on adapting critical infrastructure and building resilience in coastal and low-lying areas would be key to safeguard human and natural resources. Under the CPS, 2016–2020, ADB aims to support (i) sustainable natural resource use by improving the biodiversity of forestlands and associated ecosystems; (ii) climate change adaptation by mainstreaming climate-proofing measures into infrastructure investments and supporting the introduction of new climate technologies; and (iii) climate change mitigation by supporting the transport, energy, urban, agriculture, and natural resources sectors. It also noted that “ADB supports efforts to reduce emissions

36 ADB. 2008. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank, 2008–2020. Manila. Three

modalities were identified: (i) mobilizing and innovating to meet financing needs through client-resilient investments; (ii) strong TA programs to generate and disseminate knowledge; and (iii) cultivating and fostering partnerships.

37 ADB. 2009. Country Strategy and Program Midterm Review: Viet Nam, 2007–2010. Manila. The CPS envisaged an increasing focus on social inclusiveness including ethnic minorities and regional cooperation to better manage shared water resources especially in the Red and Mekong river basins and trans-boundary bio-conservation areas.

Performance Assessment 13

stemming from deforestation and forest degradation” (footnote 16). Further, the projects are consistent with the United Nations’ Sustainable Development Goals, especially Goal 13, to take urgent action to combat climate change and its impacts; and Goal 15, to protect, restore and promote the sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, halt and reverse land degradation, and halt biodiversity loss.

2. Relevance of Design and Innovations

43. TA 7377: Climate Change Impact and Adaptation Study in the Mekong Delta. The targeted sectors were agriculture, energy, and transport. The executing agency, IMHEN, is a research institute tasked with climate modelling and climate change impact assessment. IMHEN was appropriate for executing part A of the project, which involved climate change prediction and analysis. Based on part A, adaptation options were to be designed and implemented for development planning in the target sectors at the provincial level (part B). However, IMHEN did not have the appropriate capacity to identify on-the-ground activities for adaptation measures and provincial development planning in any of the target sectors. In fact, it was hard for the Hanoi-based research institute, in the first place, to develop feasible adaptation measures that were suitable for development planning in the Mekong Delta region. At the design stage, it was expected that the provincial DONRE and DARD would be committed to implementation, especially for part B. However, the engagement of both DARD and DONRE during implementation under the PPCs was quite limited. Engagement of the right stakeholders, implementation arrangements for ensuring long-term operation and maintenance (O&M) mechanisms, and communication plans should have been taken into account at the design stage.38 44. The project was one of the first to focus on developing a regional, cross sectoral approach to climate change adaptation options. On the positive side, the project’s design deserves credit for initiating regional development planning linked with climate change resilience and bringing government attention to IMHEN, DONRE and other provincial agencies. Considering the potential merits of the regional development planning initiative linked with climate change, TA 7377 is assessed borderline relevant. 45. TA 8102: Promoting Climate Resilient Rural Infrastructure in the Northern Mountain Provinces. As designed, the project implemented activities that were funded by both ADB and UNDP. While ADB undertook the mainstreaming of bioengineering, UNDP implemented activities related to: (i) climate change adaptation for policy integration, (ii) capacity enhancement of climate-proof rural infrastructure investments and provincial planning, and (iii) learning and dissemination of best practices to stakeholders and development partners. 39 The envisaged outcome was the mainstreaming of climate resilience measures into MARD’s rural infrastructure program. However, the outcome proved to be unrealistic in terms of its scope. A more realistic approach could have been the demonstration of the utility and cost effectiveness of bioengineering techniques for climate resilience, including the development of preliminary design standards. The evaluation notes that the project design, especially the outcome, could have been reviewed more carefully and redesigned when this TA was detached from the loan project and became a stand-alone activity (para. 27). The co-financing arrangement contributed to the dilution of the linkage between the outputs and outcome of the TA, which eventually affected outcome achievement. 46. To attain the mainstreaming goal, two additional elements were required: (i) demonstrations of bioengineering techniques at multiple sites with different conditions, and (ii) a review of existing engineering MARD standards and changes in the guidelines for the use of bioengineering techniques. These additional elements could have led to upscaling of the techniques in the provinces. However, there was no upscaling activity nor any process in the project to ensure that this would happen. Also, the

38 TCR reported that the capacity of national counterparts could have been better used to strengthen the planning processes of

provincial counterparts. 39 UNDP Viet Nam.

https://www.vn.undp.org/content/vietnam/en/home/operations/projects/environment_climatechange/promoting_climate_resilient_infrastructure_in_northern_mountain_provinces_of_viet_nam.html.

https://www.vn.undp.org/content/vietnam/en/home/operations/projects/environment_climatechange/promoting_climate_resilient_infrastructure_in_northern_mountain_provinces_of_viet_nam.html

https://www.vn.undp.org/content/vietnam/en/home/operations/projects/environment_climatechange/promoting_climate_resilient_infrastructure_in_northern_mountain_provinces_of_viet_nam.html


project did not adequately anticipate the challenges associated with MARD’s approval procedure. The MARD approval process needed more time than expected. Due consideration and elaborate planning are required to be in place for designing projects. Despite these design issues, the evaluation recognizes the project’s innovative features in demonstrating appropriate bioengineering techniques. TA 8102 is assessed borderline relevant. 47. TA 8592: Improving Payment for Forest Ecosystem Service Implementation. Key stakeholders of PFES implementation in the provinces included ethnic minorities (as forest owners); provincial FPDFs and national parks (as payees); and tourists and enterprises (as payers). The project design has proved to be suitable for involving all stakeholders in forest management, facilitating a consultation process, and supporting the development of institutional capacity in the three provinces. The FPDFs of the provinces were engaged in the project design. Both the national VNFF and the provincial FPDFs were actively engaged in testing and rolling out the approaches and materials produced. This high level of commitment by the governments, combined with the appropriate selection of executing agencies with the right capacity and objectives that were closely aligned with the TA objectives, led to the successful execution of the project. 48. Moreover, the project was innovative in that it developed a mechanism for collecting PFES fees from the three sectors, which were newly introduced under the project. Owing to the novel feature of valuation of ecosystem services, the project featured extensive stakeholder consultations and the engagement of provincial governments and village communities. The TA project can be credited with gaining recognition to boost PFES implementation across the provinces including communities and enterprises. Capacity for implementing PFES had to be enhanced across all stakeholders and thus effective dissemination strategies were needed. The project provided the momentum to collaborate on PFES implementation, at provincial and village levels, by involving all local stakeholders. Given the TA strategic alignments, relevance of design and innovative features, TA 8592 is assessed highly relevant.

B. Effectiveness

1. TA 7377: Climate Change Impact and Adaptation Study in the Mekong Delta

a. Achievement of Outputs

49. The five expected outputs were: (i) modelling future climate change scenarios; (ii) documentation of the effects of climate conditions on natural, social, and economic systems; (iii) documentation of appropriate climate change adaptation measures; (iv) developing pilot projects for the upscaling and replication of TA outcomes; and (v) institutional strengthening and community awareness. The TA consisted of part A (i-iii) and part B (iv-v) (paras. 10 and 20).

50. Climate change model outputs for future climate scenarios. The project produced a range of climate change model outputs. However, the quality and utility of this modelling are questionable. The main issues are the unexplained and irreconcilable inconsistencies in model outputs for temperature and precipitation. For example, the temperature outputs for the A2 and B2 scenarios are not as would be expected because the B2 temperatures are often higher than those of the A2 scenario and the change in temperature out to 2050 is sometimes not as large as the change to 2030. Likewise, the downscaled rainfall projections under A2 are sometimes less than the change under B2 for both the seasonal and monthly projections.40 One possible explanation is the inadequate downscale modelling selection process adopted for the project as no attempt was made to select appropriate models or to evaluate the effectiveness and quality of the model output.41

40 These issues were identified by the project but the reasons for these anomalous results were not explored. 41 There was no Global Climate Model selection process, no Regional Climate Model evaluation and no data verification against

existing climate records. See the process adopted in Evans JP, Ji F, Lee C, Smith P, Argüeso D, Fita L. A regional climate modelling projection ensemble experiment—NARCliM. Geosci Model Dev Discuss. 2013;6(3):5117–5139. doi: 10.5194/gmdd-6-5117-2013


51. Documentation of the effects of future climate conditions. The project evaluated the potential effects of the modelled climate outputs on a range of social, economic, and natural systems, and subsequently used this analysis to develop a hotspot analysis. Hotspots were defined as those areas that inherently have the highest scale of hazard. Unfortunately, a component of the baseline data, notably the digital elevation model (DEM), was flawed. Errors with the DEM made the assessment of saline intrusion and tidal inundation problematic, thus rendering the analysis of flood risk unreliable.42 There is no evidence to show that the project made allowances for this potential serious flaw in the assessment of flood hazard, thus raising doubts regarding the assessment of risk and vulnerability across these areas. 52. Part A of the project included an analysis of vulnerability and the development of district vulnerability profiles. These profiles were used to demonstrate both the relative vulnerability of each of the five main sectors (i.e., poverty, population, urban settlements, energy industry, and agricultural livelihoods) and the potential changes in each of these in response to climate change. These profiles show quantified changes in vulnerability in response to climate change based on a normalized ranking score between 0 and 100 across each of the five sectors. These vulnerability profiles are based on a reasonably comprehensive set of baseline and projected vulnerability indicators. However, the evaluation is not clear about their reliability because no methodology is provided in any of the technical documentation on how the quantitative scores were derived.43 Also, an assessment of environmental impacts and issues was part of the intended output. However, there was no specific assessment of the impact of climate change on natural assets such as wetlands or coastal forests nor any data relating to the vulnerability of any environmental or natural assets.

53. Documentation of appropriate climate change adaptation measures. Based on documentary analysis, extensive discussions with provincial officials, and field visits, the project produced a long list of 26 possible adaptation projects. In discussion between ADB, IMHEN, and the PPCs of Ca Mau and Kien Giang, the project developed a set of evaluation criteria that were used to evaluate and rank each of the 26 long-listed projects. This resulted in a shortlist of six pilot projects for further development and potential financing: two projects for livelihoods, two for transport, and two for urban investments.44 54. Pilot projects for the upscaling and replication of TA outcomes. For each of the six pilot projects, the project produced a concept paper about key issues, together with a broad preliminary cost benefit analysis and implementation arrangements for further development. These concept papers were combined into an umbrella concept paper by project team, with the intention of providing enough detail for ADB to take the projects to the feasibility level. To meet the project outputs, these concept papers should have been developed further to at least the feasibility level. Additionally, this evaluation could not find any level of recognition within the provincial agencies of the proposed adaptation pilot projects. No provincial agencies met by the evaluation team were aware of the TA project implemented and pilot projects planned for their province, let alone its outputs. These observations imply that the project design and implementation arrangements were prepared in a more consultant driven way, which resulted in the provincial agencies not being involved in the project and the intended outcome not being achieved.

42 The consultant noted “the availability, accuracy, and access to DEMs of Viet Nam is a particularly sensitive issue. This problem is

illustrated by the Kien Giang DEM (…) where large areas are indicated by the legend as being greater than 200 meters elevation. This is unlikely to be true, however, despite consultation with IMHEN counterparts it could not be determined whether this apparent error was just a problem with the legend on the DEM image or if there is a more fundamental problem with the DEM.” Sinclair Knight Merz (SKM). 2011. Climate Change Impact and Adaptation Study in the Mekong Delta: Climate Change Scenarios Working Paper. p. 29.

43 ADB. 2013. Climate risks in the Mekong Delta: Ca Mau and Kien Giang provinces of Viet Nam. Manila: Philippines. P. 4. According to the report, the process involved a subjective analysis of the baseline data using an expert system approach: “the indicators that were used for each sector incorporate measures of exposure (from modeling and GIS mapping), sensitivity (from district survey data), and adaptive capacity (observations and findings from the sector consultations).” The method also incorporated weighting factors based on expert opinions. These weighting factors are not explained.

44 ADB. 2013. Socialist Republic of Viet Nam: Climate Change Impact and Adaptation Study in the Mekong Delta. Technical Assistance Consultant’s Final Report. Manila (TA 7377-VIE).


55. Institutional strengthening and community awareness. The project included two subcomponents. Firstly, a capacity assessment of provincial government agencies and district level community organizations was undertaken. This assessment indicated a low level of knowledge about climate change projections and noted that the two provinces did not know much about the analysis done under part A. The second subcomponent was the development and delivery of a formal institutional capacity building program. Workshops were conducted for (i) provincial level officers from key agencies including DONRE, DARD, Department of Construction, Department of Transport, and Department of Planning and Investment; and (ii) district officers and civil society groups including the Women’s Union and the Farmers Union. In addition, a policy brief for government policymakers was prepared in close collaboration with IMHEN and ADB. The brief, prepared in both English and Vietnamese, brought together part A and part B and provided a summary of climate change in the region. 56. In Ca Mau province, DONRE staff referred to the national climate projections from IMHEN when asked what climate modelling data was used.45 It is understandable that this newer and government sanctioned information would be used in preference to the TA study. Nevertheless, no reference to the TA can be found in that report. Rather, the IMHEN projection used a completely different approach to global and regional model selection. Thus, it is difficult for this evaluation to determine if the project made any contribution to the increased institutional capacity of IMHEN. During the mission, former IMHEN staff who were involved in the project from Ha Noi, could not give any clear guidance on how the data was stored or if the modelling outputs were used by any other agency.

57. This evaluation considers that only output 3 was delivered. Although the other outputs were delivered, they were not of a suitable quality. This was attributed to technical flaws and the lack of any mechanism for ensuring that the materials would be embedded in the operations of provincial agencies. The project paid more attention to producing a series of report outputs than ensuring the quality of the outputs. Also, the project did not build functional linkages linkage between parts A and B in sharing activities, deliverables, and knowledge under each part.

b. Achievement of Outcome 58. The envisaged outcome of the project was improved sector and provincial authorities’ capacity to increase climate-resilience programs, plans, policies, and projects to guide future development planning. For a successful outcome, it would have required significant buy-in and commitment from the provincial agencies involved in climate-resilience oriented development planning. The evaluation found no evidence that the TA had helped to increase institutional capacity. Appropriate adaptation measures were to be developed for potential scaled-up support for the institutional strengthening of target provinces and regional sectors. Unfortunately, none of the proposed projects was developed into actual adaptation measure activities under the project. In addition, coordination between IMHEN and the provincial governments was inadequate. This resulted in the limited engagement of DONRE and DARD agencies in project implementation and the lack of awareness of the project among the provincial agencies’ staff. The outcomes were not achieved. TA 7377 is assessed less than effective.

2. TA 8102: Promoting Climate Resilient Rural Infrastructure in the Northern Mountain Provinces

a. Achievement of Outputs

59. The outputs were (i) identification of low-cost climate-proofing measures suitable for rural infrastructure; (ii) demonstration of climate change resilient techniques in the provinces of Bac Kan and Son La; (iii) establishment of a trained cadre of technical personnel familiar with the protection measures; (iv) preparation of recommendations for the integration of the demonstrated approaches into training

45 MONRE. 2016. Climate change and sea level rise scenarios for Viet Nam. Ha Noi.


curricula, standard design procedures, and contract specifications; and (v) identification of climate change risks and vulnerabilities, and the potential for applying the measures for strengthening community resilience. In summary, outputs 1–4 were achieved while output 5 was not achieved. 60. Identification of low-cost climate-proofing measures suitable for rural infrastructure. The project identified a range of bioengineering techniques that are suitable for basic rural infrastructure and use local plant species, since they are readily available. The demonstration of the bioengineering approach was well received; it was supported not only by DARD but also by the local people of Thanh Mai Commune interviewed by the evaluation mission. There was widespread consensus that these techniques should be applied across the province.46 61. Demonstration of climate change resilient techniques. The project resulted in the design and installation of four demonstration sites featuring a range of slope protection measures with bioengineering techniques. Two demonstrations were on riverbanks, at Thanh Mai Commune in Bac Kan Province and at Thom Mon Commune in Son La Province; and two were on roadside cut and fill slopes, at Lien Minh Commune in Thai Nguyen Province and at Phong Lap Commune in Son La Province. The evaluation team visited the river slope demonstration site in Thanh Mai Commune and observed that the bank stabilization measures appeared to be functioning.47 Members of the Thanh Mai CPC and Thanh Mai Women’s Union welcomed this approach, noting that the techniques had been successful during implementation. However, they were concerned that insufficient resources had been allocated for maintenance after the project (refer to the discussion on sustainability in section D).

62. Establishment of a trained cadre of technical personnel familiar with the protection measures. Four training workshops on the bioengineering techniques took place: (i) vulnerability and adaptation response workshop, (ii) bioengineering: design and construction—riverbanks, (ii) bioengineering: design and construction—roads, and (iv) lessons learned. Targeted participants were the 16 members of the Technical Core Group.48 This output was therefore substantially completed. However, the scope of the personnel involved in the training was a concern. Of these 16 members, only two were from the agency responsible for design standards, namely the Department of Construction Management. PPMUs of Bac Kan, Son La and Thai Nguyen have a significant role in the design and implementation of slope stabilization projects and yet had only 1 member each. Most participants were from agencies that were not directly involved in the longer-term issues of design standards and guidelines for bioengineering. This indicates more suitable selection criteria of training participants should have been applied. 63. In September 2016, the project conducted a bioengineering training course for students in the engineering department of Hanoi’s University of Transport and Communications. They visited the roadside demonstration site in Thai Nguyen.49 A student supervisor stated to the evaluation mission that the bioengineering techniques would be successful for mainstreaming across the province, and that official guidelines should be prepared and issued by an authorized entity such as the Ministry of Transport. 64. Preparation of recommendations for the integration of the demonstrated approaches into training curricula, standard design procedures, and contract specifications. In May 2017, the project developed 3 technical guidelines aimed at providing guidance for the design and implementation of bioengineering: (i) technical guidelines for slope erosion protection; (ii) drawings and specifications; and (iii) training course content. The project produced 10 technical reports with recommendations on the design and use of bioengineering for rural infrastructure in northern Viet Nam.50

46 The provincial DARD mentioned that the TA did an excellent job of identifying low-cost bioengineering approaches as climate

proofing and demonstrating how they can be incorporated into some rural infrastructure projects. DONRE concurred. 47 A quantitative assessment was not possible during the mission because of the absence of specific data. 48 The agencies with representatives in the core group included the Department of Construction Management; Department of

Water Resources; Department of Science, Technology and Environment; PPMUs of Bac Kan, Son La and Thai Nguyen; Viet Nam Academy of Water Resources; UNDP; and APMB.

49 Footnote 34, p. 9. 50 Footnote 34, p. 72.


65. Identification of climate change risks and vulnerabilities, and the potential for applying the measures for strengthening community resilience. The project identified climate change risks and vulnerabilities in the provinces. However, this was limited to the risk and vulnerability of local rural infrastructure to potential changes in rainfall intensity and the role of bioengineering in ameliorating that impact. The project developed two reports on climate change risks and vulnerabilities and, in November 2013, held one workshop on vulnerability assessment and adaptation responses. Nonetheless, the design specifications were specific only to the demonstration sites and not applicable to other sites. Also, the CPC and local people were critical of the lack of training, especially on O&M, and the minimal involvement of the local communes in the project including its handover. An important concern was the absence of a long-term maintenance plan and budget for the demonstration sites. It is difficult for the evaluation to find any supporting information to indicate that the project had any discernible impact on the “resilience of communities.” If O&M training had been undertaken during project as well as O&M work after project, it would have increased community resilience through the sustained application of bioengineering techniques.

b. Achievement of Outcome

66. The project’s envisaged outcome was the mainstreaming of climate-resilience measures into MARD’s rural infrastructure program. For this to occur, the project design should have had demonstrations at multiple sites with a range of conditions (e.g., geographic and vegetative conditions, and access to materials). At evaluation, the provincial DARD and DONRE acknowledged that the project demonstrated the suitability and cost effectiveness of the bioengineering approaches. The project focused on the identification and demonstration of bioengineering techniques at four pilot sites (paras. 60-61). While this was an initial step towards the mainstreaming goal, having only four sites was insufficient to develop design standards and regulations. In the absence of upscaling activities, it was difficult to capitalize on project outputs and disseminate the project experience to a wider geographic coverage. 67. MARD did not succeed in specifying applicable design standards and regulations during the project. This can largely be attributed to the weak commitment of MARD. Accordingly, the bioengineering approaches have not been adopted elsewhere within the pilot provinces, let alone mainstreamed in MARD’s rural infrastructure program. Without overarching support from MARD, it was improbable that the provinces would try to disseminate and mainstream such green engineering rural infrastructure. The mainstreaming has yet to be realized.51 As the outcome was not achieved, TA 8102 is assessed less than effective.

3. TA 8592: Improving Payment for Forest Ecosystem Service Implementation a. Achievement of Outputs

68. The project had four outputs: (i) economic evaluation of environmental services standardized at the provincial level; (ii) mechanisms for PFES valuation, management, and distribution piloted and institutionalized; (iii) national and provincial policymakers have the capacity to value ecosystem services and integrate them into economic development planning; and (iv) best practices and lessons captured and shared. These project outputs were substantially achieved.

51 The TCR highlighted that the project benefits were the demonstration of a range of bioengineering techniques and the

familiarization of local experts with bioengineering works, which laid the foundation for mainstreaming.


69. Economic evaluation of environmental services standardized at the provincial level. Under this output, 6 economic evaluations of forest environment services were conducted for three new sectors (aquaculture, industrial water supply, and tourism). In Lao Cai province, economic evaluations were conducted for all three sectors. The PFES economic evaluation was standardized in Lao Cai and was operationalized in December 2016 (Box 1). In Thua Thien Hue province, economic evaluations were conducted. The PFES for tourism and industrial water supply was operationalized.52 However, PFES revenue from these sectors are minor among revenue sources: hydropower (about 90%), water supply for industrial use (about 10%), and tourism (less than 1%) as shown in Appendix 2.

70. A single study on aquaculture was undertaken in Ca Mau. However, PFES for aquaculture was not operationalized during the project because the study was unable to separate the recipient or the payee from the provider. The major beneficiaries of FES are the small-scale farming enterprises, which are the same entities as those that are providing the coastal protection services from forests.53 71. Mechanisms for PFES valuation, management, and distribution piloted and institutionalized. Four government-backed mechanisms for implementing PFES, including guidelines and manuals, were developed under the project. These were piloted and implemented in the three provinces.

(i) The first mechanism, aimed at FES valuation and payment, was a manual on Developing

the Plan on the Implementation of the Policy of PFES at the Provincial Level. It outlines the overarching principles and objectives of the system and provides guidelines on the preparation of the 5-year plan for implementation. As a result, the economic evaluations of FES were integrated into each province’s 5-year PFES implementation plan (2016–2020). Each plan was approved by the respective provincial people’s committee.

(ii) The second mechanism, regarding the collection and distribution of PFES funds, was approved by MARD.54 This handbook sets out the management of the financial aspects of operating the PFES at the provincial level on: an overview of the PFES policy; the financial issues in PFES implementation; and guidelines on accounting in PFES. It includes

52 Economic evaluation was not conducted in Kon Tum under the project. Kon Tum was selected as a pilot province to demonstrate

PFES data storage because only Kon Tum among the three provinces had the data on forest changes and inventory on the national forest investigation and inventory system server.

53 In Thua Thien Hue, the pilot for aquaculture was abandoned when a large-scale pollution event wiped out the fish farming enterprises.

54 The Handbook has been issued officially through Decision No. 5307/QD-BNN-TCLN dated 22 December 2015 of MARD. VNFF. 2015. Handbook on Accounting and Financial Management for Payments for Forest Environmental Services. Ha Noi.

Box 1: Payment for Forest Ecosystem Service in Lao Cai Province

Lao Cai province is considered one of the most suitable provinces for piloting payment for forest ecosystem service (PFES) across multiple sectors because (i) mountainous forests occupy 33% of the total area of the province, and (ii) there is a good mix of industries that have readily identifiable beneficiaries (forest ecosystem service [FES] payers) and providers (FES payees) of forest ecosystem service. Under the project, the payers are enterprises in the aquaculture, tourism, and industrial water supply sectors as well as tourists. Lao Cai forest protection and development fund recognizes the project value in developing a mechanism for collecting PFES fees from the three new sectors. The mechanism has helped to generate new revenue sources for FES providers, which were not in place before the project. Since the project, PFES has gained high recognition in the province. The value of the project and its benefits have been recognized by various stakeholders including ethnic minorities in remote areas. The mission met PFES payers, i.e., industrial plant water users, hydropower plant operators, and aquaculture enterprises. They were all well aware of the FES provided by upstream forests. In the province, enterprises (FES payers) showed a willingness to pay more if FES providers (payees) were able to guarantee the performance or service.

Source: Asian Development Bank (Independent Evaluation Department).


guidelines for determining the type of forest, the services to be paid for, the payment rate, the methods of payment, the roles and responsibilities of each institution, and the financial monitoring and reporting requirements.

(iii) The third mechanism, covering forest monitoring and evaluation, was piloted in Kon Tum province as the only province that possessed comprehensive spatial forest ownership and distribution data during implementation. This resulted in the MARD-approved manual Guiding the Use of Software on the Online GIS Data Sharing Web GIS. At evaluation, the two provinces of Lao Cai and Thua Thien Hue had operationalized this system.

(iv) The fourth mechanism was targeted PFES management at the commune and village level.55 This approach was piloted in Kon Tum and Thua Thien Hue provinces and was subsequently approved for adoption by the provincial governments. Community representatives in these provinces stated that the guidelines and handbooks were useful in helping the CPC decide how payments should be made and distributed in a transparent way. During the evaluation mission, the provincial FPDF staff, PPCs, and CPCs interviewed indicated a widespread acceptance and acknowledgement of the quality and utility of the material produced.

72. National and provincial policymakers have the capacity to value ecosystem services and integrate them into economic development planning. Close collaboration among PFES stakeholders was facilitated through the project’s technical steering committee meetings, workshops, and trainings. 56 In total, 69 central and provincial FPDF officials participated in the PFES Web geographical information system (GIS) training-of-trainers, which provided them with the necessary skills and knowledge to organize follow-on training for Web GIS forest M&E. The capacity of more than 500 provincial and national PFES officers was improved through 13 trainings and workshops, covering four PFES technical areas: (i) PFES valuation; (ii) PFES integration in five-year planning; (iii) Web GIS for forest M&E; and (iv) financial management, accounting, and village fund management. About 40% of the training participants were women, except for the Web GIS training where female participation was lower than 40%. The final PFES capacity assessment was completed and approved by MARD in December 2016. 73. Overall, the project significantly enhanced the ability of FPDF staff to carry out their annual planning and regular collaboration with village communities (Box 2). As a result, illegal logging, including non-timber forest products, and forest fires were significantly reduced. 57 In all of the 3 provinces interviewed by the evaluation, both provincial FPDF staff and villages noted positive changes and consequences that could be attributed to the project: (i) PFES significantly improved park revenues from ecosystem management, (ii) funding operations improved, (iii) the FPDF staff worked closely with the villagers to develop and monitor the management plan, and (iv) individual communities have significantly improved the awareness of ethnic minorities, as forest owners, and their involvement in forest management. Regarding the first and second items above, FES revenue increased significantly with the project. In Lao Cai province, it increased tenfold from about VND10 billion (2012) to VND103 billion (2018); in Thua Thien Hue, from about VND10 billion (2013) to VND27 billion (2018); and in Kon Tum, from about VND161 billion (2012) to VND272 billion (2018). Details are shown in Appendix 2.

55 This resulted in the Handbook Management and Use of Payment for Forest Environmental Services Money at the Village Level. 56 The intended of establishing a PFES champion network was not approved by MARD because of a policy shift to streamline

internal network formation. Consequently, this project contributed to the PFES stakeholder collaboration. 57 Lao Cai forest protection and development fund. In Lao Cai province, the frequency of illegal logging was reduced from 24 per

year (2012) to 11 per year (2018). Forest fires declined from 37 per year (2012) to none in 2018 (Appendix 2).


74. The third point was corroborated by the FPDF and communities. Through their collaborative monitoring activities, the FPDF and local people came to recognize that the current FPDF administration fee (approximately 10% of FPDF revenue) is inadequate for conducting effective monitoring and ensuring compliance. For example, in 2018, Lao Cai FPDF received revenue of VND103 billion ($4.4 million).58 Each owner is estimated to receive a maximum of VND4.1 million ($175) per year.59 Consequently, monitoring activities by communities have been reduced in terms of frequency and the number of participants patrolling because the amount was inadequate to maintain forest ecosystem service. This indicates that the current FES valuation scheme and allocation for the administration fee needs to be carefully reviewed. It is reported that the unit cost was increased under Decree 156 with clearer guidance on forest management. Nonetheless, Decree 156 has set a significantly lower unit price than the values and the unit costs identified under the project. 60 This opinion was commonly heard from FPDF and the communities in the three provinces. 75. Best practices and lessons captured and shared. The project produced a wide range of knowledge products, including assessment reports on PFES and audio-visual products for ethnic minorities, in addition to the technical handbooks and guidelines (para. 71). The project provided training for more than 1,600 stakeholders on PFES through 31 capacity building events. For example, the project cooperated with VNFF to organize a training course in Hanoi in April 2016, using the project products. About 80 accountant staff of 40 provincial FPDFs across the country and some representatives of relevant agencies attended. Further, the results of the project were widely disseminated through the VNFF’s national network and website61 and ADB’s regional network.62 All outputs were fully achieved.

58 The currency rate was VND23,310/$1 on 20 December 2018. 59 Appendix 2. A mission finding indicated that, besides the FPDF administration fee (10% of PFES revenue), the remaining 90% of

PFES revenue is allocated as follows: 65-75% for forest patrolling and 25-35% for livelihood improvement (e.g., training and microfinancing). The portion is decided annually by each province. A maximum of 75% is to be allocated for monitoring. In the case of Lao Cai province, VND102,841,580,840 *90%*75%/17,008 (households) equals VND4.08 million.

60 Under Decree 156, the PFES rate applied to industrial production establishments using water from water sources is VND50/m3. Under the TA, the value of forest in regulating and maintaining water sources for industrial production is estimated to be VND637.19/m3 for industrial production.; VNFF. 2015. Economic valuation of ecosystem services to develop payment for forest environmental services mechanism on industrial production and tourism in Lao Cai and Thua Thien Hue province.

61 The VNFF website had 1,538,616 visits from November 2015 to November 2016. VNFF. Best practices and lessons learned p. 36 62 Improving Forest Ecosystem Services Implementation: TA-8592 VIE (2014-2016)

http://www.gms-eoc.org/resources/improving-payment-for-forest-ecosystem-services-implementation-ta-8592-vie (accessed 10 September 2019).

Box 2: Advanced Monitoring System Developed in Thua Thien Hue

A successful example of capacity development was observed in Thua Thien Hue province, where an advanced monitoring and evaluation system has been established and practiced at the village level. It uses a number of hardware and software tools including geographic information system enabled tablets. The methodology has improved both the spatial and temporal planning of patrols and the systematic monitoring of activities as well as the reporting of forest condition. This technology has assisted Tan My villagers in their patrols and in the collection and recording of data to upload during monitoring. This idea originated from the initiative of a forester of the provincial forest protection and development fund. The data and monitoring and evaluation system could potentially be rolled up at the provincial level to provide information on forest clearing legal activities in forest maintenance, on a regular basis, across the province and country. In addition, payment for forest ecosystem service in Thua Thien Hue province has benefited from another Asian Development Bank support.a Under the regional technical assistance project, the province established a monitoring tool that covers social, economic, and environmental conditions. Currently, a carbon sequestration study pilot is being carried out in Thua Thien Hue province. Increases in revenue sources are needed, potentially from the operationalization of carbon sequestration credits. ___________________ a Asian Development Bank. 2011. Technical Assistance for the Core Environment Program and Biodiversity Conservation Corridors Initiative in the Greater Mekong Subregion, Phase 2. Manila. Source: Asian Development Bank (Independent Evaluation Department).

http://www.gms-eoc.org/resources/improving-payment-for-forest-ecosystem-services-implementation-ta-8592-vie


b. Achievement of Outcome 76. The project’s envisaged outcome was that ecosystem values and payments in the provinces would be appropriately assessed following PFES evaluation methodologies and integrated in the five-year PFES implementation plans of the three provinces. A PFES collection and disbursement system was adopted by the individual provinces and approved by the government. A nationwide approach to GIS-based forest monitoring has also been rolled out. The project is assessed effective.

77. In summary, the achievement level of outcomes and outputs for the three separate projects varied. The outputs from TA 7377 could be considered to have been achieved, but the quality was unsatisfactory. The outputs of TA 8102 and TA 8592 were substantially achieved. The outcome of TA 8592 was achieved and had transformative effects on other provinces. On the other hand, the TA 8102 outcome was not achieved because of design shortcomings and the inadequate commitment of MARD for the mainstreaming process. The evaluation is of the view that TA 7377 is less than effective; TA 8102 is less than effective; and TA 8592 is effective.

C. Efficiency

78. TA 7377: Climate Change Impact and Adaptation Study in the Mekong Delta. The project, which utilized about 97% of the approved amount, was completed about 2.5 years after the original target date. Several factors significantly reduced its efficiency. Recruiting two consultants consecutively instead of in parallel caused the main implementation delay. In addition, the lack of coordination between parts A and B generated inconsistencies in the approach to the two parts, and the hiring of a new consultant team for part B was not smooth. Also, having two separate consultancies led to the disruption of knowledge and the inefficient transfer of the project to local governments. MONRE and the project teams should have been more active in sharing the analysis and its potential applicable usage for development planning with DARD and DONRE of the Mekong Delta region. Given the significant implementation delays, the project is assessed less than efficient. 79. TA 8102: Promoting Climate Resilient Rural Infrastructure in the Northern Mountain Provinces. The project, which utilized about 88% of the approved amount. was extended twice and completed about 21 months after the original target date. The significant implementation delays were mainly caused by two factors: (i) the complexity resulting from cofinancing and design limitations, and (ii) the lengthy approval procedures of APMB within MARD as well as delays in ADB’s hiring of consultants. 80. The cofinancing modalities of the project resulted in a complex reporting and project management structure. Separate implementation mechanisms were employed for each of the subprojects; a consultancy firm was commissioned to implement the ADB’s component, while the UNDP component was managed by APMB. MARD was the executing agency for both the ADB and UNDP components. However, it was not clear how coordination between the UNDP and ADB components was supposed to function. In hindsight, coordination and communication of the project activities should have been better and more frequent. An adequate level of coordination was hampered by design flaws in the implementation arrangements and a cumbersome project management structure. 81. According to a government agency, the time taken by ADB to mobilize consultants was one of the underlying factors for the delays. Significant delays were also caused by the multiple levels of review and the lengthy approval procedures under APMB, which affected the project timetable and the implementation of project activities, e.g., the ideal spring planting season was missed.63 Delays were also

63 The following issues are identified: (i) off-season planting, (ii) inappropriate plant material, (iii) improper planting techniques,

(iv) improper maintenance techniques, (v) no agreements with local authorities/communities for maintenance, and (vi) the limitations imposed by the lack of official standards by MARD and MOT for bioengineering methods. UNDP. 2016. Terminal Evaluation of Promoting Climate Resilient Infrastructure in Northern Mountain Provinces of Vietnam. p. 26.


experienced in developing the pilots because of MARD’s lengthy processes for the approval of demonstration sites and a change in one demonstration site, with the Son La province site being replaced by a site in Thai Nguyen province. This change resulted in the pilots being located in three geographically scattered provinces, which greatly increased travel time for the consulting firm. These factors together resulted in the project extension of almost two years (21 months). 82. Other issues that affected the project’s efficiency was a lack of understanding of the process and time required to effect change in engineering standards. New practices cannot be considered or executed, let alone mainstreamed, until the relevant documents and proposals have been fully transferred to and accepted by MARD. For this to happen, the necessary decrees and standards need to be adopted first by MARD. The project could not afford timewise to facilitate and complete this requirement process. The project underestimated the process of developing guidelines and standards within MARD for mainstreaming. Given the foregoing, the project is assessed less than efficient. 83. TA 8592: Improving Payment for Forest Ecosystem Service Implementation. The project was completed in the same year as scheduled, being extended by only 6 months. About 96% of the approved amount was utilized, and the planned outputs were delivered despite the changes in FES-related policies. 84. TA 8592 had an efficient implementation arrangement, which ensured ownership by the executing and implementing agencies. The VNFF at the national level and the individual provincial agencies were fully engaged with the project, holding regular consultations with all local stakeholders, including PFES payers and PFES payees. Such good coordination and timely communication resulted in smooth implementation. The implementation arrangements were robust and well-coordinated, allowing for the efficient use of resources. The project is assessed efficient.

D. Sustainability

85. TA 7377: Climate Change Impact and Adaptation Study in the Mekong Delta. Under TA 7377, the provincial agencies were involved in project implementation more like observers and were not engaged in a substantial way in project activities. Most of the work was carried out by consultants under the supervision of the executing agency. A more sustained approach would have been to involve provincial staff in some activities in close collaboration with the consultants. Partnering with appropriate agencies is key to maximizing the potential of the long-term sustainability of project outputs. When selecting executing and implementing agencies, careful thought must be given in the design stage to the following: What institution will be responsible for longer term uptake and implementation? Will the institution be able to lead development of the project? IMHEN was clearly committed to climate modelling analysis (part A). However, for the project to be successful in achieving its outputs and outcomes, the project, especially part B, needed to fully engage local institutions in project implementation and increase the capacity of the provincial agencies responsible for land use planning and resource allocation. Neither of these two activities is related to the functional responsibility of IMHEN. Therefore, once the project was completed, no institution was empowered to act on the project’s materials and recommendations. An example of the limited engagement with the local authorities was the final wrap-up workshop for part B. This final meeting was held in Ho Chi Minh City, located more than 6 hours away by car from Ca Mau province and 5.5 hours from Kien Giang province. This greatly reduced the attendance of provincial officers. Such workshops should have taken place in either of the target provinces. During part B activities, awareness in provincial and local institutions of the products derived from part A was very low (footnote 44).


86. TA 8102: Promoting Climate Resilient Rural Infrastructure in the Northern Mountain Provinces. The engagement of provincial governments in this project was also limited. This resulted in limited capacity building of the local authorities, making the potential for upscaling the techniques across the province minimal. Although the provincial staff had attended a few training workshops, they did not have the opportunity to gain hands-on experience of learning how to manage the demonstration project, thus affecting efforts for upscaling. No official documentation has been stored with DARD. Relevant agencies such as DONRE were completely unaware of the project, and there appear to have been problems with local communication during implementation.64 If a local authority had been included substantially in the management of the project, many of the implementation and communication problems may have been avoided. The project would have benefited from appropriate implementing arrangements, especially the involvement of provincial government agencies and local project staff in project management. 87. Although the project did not engage the local authority adequately for implementation, the demonstration of bioengineering techniques was supported by the local governments and favorably accepted in the provinces. The project experience increased awareness of bioengineering techniques. Despite the widespread consensus on the suitability and applicability of the demonstrated techniques in rural infrastructure, MARD did not disseminate and demonstrate them in different locations, nor did it mainstream them in the provinces. MARD should have developed design standards suitable for a range of conditions. It did not do so before project completion. 88. Local governments and communities expressed a concern about the lack of a long-term maintenance plan and budget for the demonstration sites. Before project completion, the project made a payment to the Women’s Union for minor upkeep of the demonstration site. After the project, monitoring at the demonstration sites was conducted for less than a year. Guidance and resources for O&M were insufficient for a longer maintenance period than just a year. The development of a manual would have helped the local people carry out O&M of the rural infrastructure. However, there was no official handover of the process to the local authorities, no guidance from the consultants, and no two-way communication between the consultants and communities. Overall, the involvement of local institutions and the interaction with communes were quite limited (para. 65). 89. Nonetheless, the project showed the potential for these bioengineering techniques to be applied more widely across other ADB projects. For example, in 2017, ADB made a loan totaling $160 million to Viet Nam for the Basic Infrastructure for Inclusive Growth in the North-eastern Provinces Sector Project.65 Nearly 25% of the project’s investment is reported to have been allocated to boost climate resilience in rural basic infrastructure, such as rural roads, dykes, and embankments in rural productive areas.66 Reportedly, the TA project is being used by the Ministry of Transport in their guidance on on-going projects. 67 It is possible that the work under the project, e.g., using technical guidelines on bioengineering for riverbank erosion protection, will be applied to future projects or even mainstreamed.

90. TA 8592: Improving Payment for Forest Ecosystem Service Implementation. The project required implementation and activities by the FPDF at the provincial level. Provincial authorities and agencies responsible for the PFES program were actively engaged. During the evaluation mission, all three provinces expressed a strong degree of satisfaction about the project. The provincial authorities demonstrated that they were adequately involved both in the project design and implementation. Their

64 Some provincial agencies including DARD had not seen project reports which reportedly had been disseminated in workshops.

It was inadequate to distribute documents to workshop participants only. This indicates that there was a need to follow local protocols for government agencies appropriately to ensure that the documents would be shared within the government system.

65 ADB. 2017. Report and Recommendation of the President to the Board of Directors: Proposed Loans Socialist Republic of Viet Nam: Basic Infrastructure for Inclusive Growth in the North Central Provinces Sector Project. Manila.

66 ADB. 2019. Asian development fund (ADF) 12 midterm review meeting 27–28 February 2019 Manila. Overview of Asian Development Fund 12 at Midterm. p. 17.

67 Southeast Asian Department of ADB. It mentioned that the MARD rural development program has largely scaled down to few investment projects.


involvement contributed to demonstrating the good practices of PFES implementation and was useful in expanding the PFES program nationwide. It also led to a high degree of acceptance and capacity development including GIS monitoring. 91. The project had an active communication strategy that utilized a wide range of communication tools including leaflets on PFES policy, quarterly newsletters, the broadcasting of PFES information on television in the provinces, an audio on the rights and responsibilities of PFES providers, and the development and broadcasting of a video clip for national television, in Vietnamese. This has ensured that the outputs have been widely disseminated. Such actions show that the provincial government agencies took ownership both during and after the project. In addition, all the knowledge products produced under the project were uploaded on the website of the Greater Mekong Subregion Environment Operations Center, a key implementing agency of an ADB regional TA in Greater Mekong Subregion (footnote 62). The project outputs have been fully utilized. All the materials produced by the project were so practical that VNFF proposed some of them to MARD for wider usage across the country. Further, the project had a significant influence on the development of Decree 156 (2018), via the inclusion of PFES values for tourism and aquaculture and the mechanism for accounting and financial management for PFES. It is being reviewed for application to other provinces. Given the government’s robust support and active commitment in promoting PFES and REDD+ along with the government’s strategic priority on climate change, the project outputs and outcome are on the way to having an even wider impact. The project is most likely sustainable. 92. In summary, TA 7377 and TA 8102 did not engage local institutions sufficiently. The project documents did not elaborate how the data (TA 7377), pilot demonstrations and outputs (TA 7377, TA 8102) would be rolled out. These projects—TA 7377 and TA 8102—are assessed less than likely sustainable. On the other hand, TA 8592 had the government’s buy-in and the strong commitment of provincial governments, engaged local communities as FES payees, and gained the consensus of enterprises as FES payers. The evaluation considers TA 8592 most likely sustainable.

CHAPTER 4

Other Assessments 93. This chapter assesses the noncore evaluation criteria—the development impact and performance of ADB and the executing and implementing agencies. The ratings here do not form part of the overall assessment.

A. Development Impact

94. Climate change adaptation is a national priority for the government in the 4 ministries/sectors of transport, construction, agriculture, and energy industry. It accounts for a significant component of government funds.68 The INDC states that the national budget is estimated to meet one-third of the financial needs to implement adaptation measures during the period of 2021–2030. The Ministry of Planning and Investment has integrated climate change into the master plan guidelines for provinces. It has developed a guideline for the prioritization of climate change adaptation projects in public sector investment. However, there is a strong need for capacity development within the line agencies responsible for adaptation at the national and provincial levels, as noted in INDC (para. 17).

95. Regional initiative. The expected impact of TA 7377 was the development of physical and economic resilience to future climate change and variability in the Mekong Delta region. This project was designed at a relatively early stage for ADB.69 Despite a history of disaster mitigation in the Mekong Delta region, regional and local development plans had made scant reference to climate change adaptation measures. However, the Ministry of Planning and Investment then began to develop “regional” climate change projects. 70 The government also expressed strong support for a regional approach to climate change adaptation in the Mekong Delta. 71 Regional approach has been endorsed by development partners.72 TA 7377 should have helped to strengthen the region’s resilience to climate change and build the institutional capacity of provincial governments to develop adaptation measures, but these aims were not attained. The long-term impact of a regional project will depend on (i) the determination of the government to propel a regional approach across sectors, and (ii) the continued commitment of individual provinces to integrating climate adaptation measures into sectoral strategies and ensuring that those measures operate effectively at the provincial level. The impact of TA 7377 is less than satisfactory. 96. Project value and benefits of bioengineering demonstration. The expected impact of TA 8102 was the improved climate resilience of rural infrastructure. Several factors provided a strong basis for the acceptance of bioengineering techniques for rural infrastructure. Specifically, using bioengineering in rural infrastructure is feasible with locally available resources and affordable costs; and O&M can be

68 ADB. (Independent Evaluation Department). 2019. Independent Evaluation Mission to Viet Nam: Technical Assistance

Performance Evaluation Report for the Resilience of Rural Development and Climate Change. Back to office report. 19–30 August. (internal) According to the Ministry of Planning and Investment, 18% of the national ministerial budget is spent on climate change, mainly on adaptation.

69 ADB. 2014. Midterm Review of Strategy 2020: Meeting the Challenges of a Transforming Asia and Pacific. Manila. “ADB financing for climate change increased significantly under Strategy 2020.”

70 This was highlighted when the evaluation interviewed the former project leader from IMHEN. The Ministry of Planning and Investment indicated its strong interest in delineating the country into 4 or 5 regions for the regional approach.

71 Government Resolution 120. Sustainable and Climate-Resilient Development of the Mekong Delta of Viet Nam. https://www.mekongdeltaplan.com/regional-coordination/government-resolution-120 (accessed 1 November 2019).

72 For example, German Corporation for International Cooperation is working with MARD to develop the Mekong Delta Climate Resilience Programme. https://www.giz.de/en/worldwide/73408.html (accessed 1 November 2019).

https://www.mekongdeltaplan.com/regional-coordination/government-resolution-120

https://www.giz.de/en/worldwide/73408.html

Other Assessments 27

conducted by the local communities if proper guidance is given and resources are secured. However, the intended upscaling in the provinces for mainstreaming of the techniques did not take place, mainly because of the lack of resources and the limited engagement of local institutions in project management. Mainstreaming into MARD’s rural infrastructure program could be successful if regulations and design standards were set and approved by MARD. Although the project outputs were largely delivered, the outcome was not achieved, in part due to a design flaw. Nonetheless, the project brought the attention of the provinces and communities to the value of maximizing locally available resources for strengthening basic rural infrastructure. If MARD’s plan to mainstream the techniques moves forward, it could capitalize on the project by incorporating them in other regional programs and projects. This evaluation considers the impact of TA 8102 to be borderline satisfactory. 97. Development of PFES implementation scheme. The expected impact of TA 8592 improved rural livelihoods and environmental quality through PFES implementation. Following the project, PFES implementation gradually expanded to other provinces. The development impacts began to materialize, e.g., increased PFES revenue helped maintained forest condition with reduced illegal logging and forest fires. As demonstrated by this project, TA support works most effectively when executing and implementing agencies are committed and have strong ownership of the projects, and when operations are grounded on a genuine understanding of the provinces’ need to make use of the project outputs.

98. The capacity of provincial staff needs to be strengthened, especially in managing forests in transboundary and remote areas to ensure compliance. In Lao Cai province, instances of non-payment were observed. Hence, capacity needs to be strengthened and a grievance mechanism established. In the province, it is estimated that about 60,000 hectares of forest are being managed under the FPDF. About 20% of these forests have not received a FES payment. FPDF needs to carry out continuous monitoring that covers all forests and neighboring communities included in the PFES implementation scheme. Related to this, education programs for local communities including ethnic minorities should be developed to ensure that PFES is implemented in forest areas and transboundary zones in marginal areas (Box 3). Notwithstanding, the good practices and experience gained through the project, including the transboundary management as well as the actual products, are expected to continue to influence PFES nationwide. The impact of TA 8592 is satisfactory.


B. Performance of the Asian Development Bank

99. TA 7377 responded in a timely manner to the evolving needs in the Mekong Delta region with respect to climate change impact assessment and its application to development planning across sectors. Its aim of engaging related sectors was valid at the design stage. However, lack of coordination between parts A and B contributed to significant implementation delays, in addition to the change of the ADB project officer three times during the project. Overall, ADB should have been more committed to coordinating with MONRE and engaging provincial governments fully in project design and implementation. The intended outcomes and outputs, especially enhancement of provincial governments’ capacities for climate resilience, were quite limited and thus not attained. ADBs’ performance is considered less than satisfactory. 100. TA 8102 demonstrated bioengineering techniques. The goal of mainstreaming bioengineering techniques in the provinces was unrealistic and required more commitment from MARD. The project design including the implementing arrangement was complex from the outset and impacted by the co-financing arrangement. Despite the limited component directed by ADB, the project was not redesigned for a more realistic outcome. More attention should have been paid to coordination with UNDP and MARD. Timely communication and sharing of information could have been improved if a mechanism involving all stakeholders had been put in place during implementation. Considering the intention of the project and the wide acceptance of the bioengineering approach in the provinces, ADB’s performance is borderline satisfactory.

Box 3: Transboundary Management of Forest Ecosystems

Payment for forest ecosystem service (PFES) implementation in the Hoang Lien National Park of Lao Cai Province raises an important issue related to forest management in transboundary provinces. Hoang Lien National Park belongs to Lao Cai Province administratively. Geographically, the park is located across two provinces, Lao Cai and Lao Chai. Among the park coverage of 18,602 hectares (ha), about 7,000 ha belongs to Lao Chai province. The park has implemented PFES since 2012 and received funds from Lao Cai forest protection and development fund. Although the park management of Lao Cai province has not received PFES from “Lao Chai” province, the park of Lao Cai province has continued to implement all PFES activities including the Lao Chai area of the park. This raises issues for park management, i.e., transboundary forest management issues. For example, the unit cost of PFES in the adjoining province is higher than that of Lao Cai province (VND1 million/ha in Lao Chai, versus VND600,000/ha in Lao Cai). Both provinces are considering making a proposal that each province agree to delineate the park management area to manage with their own funds. However, Viet Nam Forest Protection and Development Fund (VNFF) does not acknowledge the issue and so it has remained unsolved. Transboundary management of forest ecosystems, including water resources, is a universal challenge. A common understanding of PFES is needed among the stakeholders in terms of ownership and the equitable distribution of benefits, in this case, PFES revenue. For example, an Asian Development Bank regional TA project, the Core Environment Program and Biodiversity Conservation Corridors Initiative in the Greater Mekong Subregion, adopted a landscape approach to biodiversity conservation in transboundary zones. Adopting the landscape approach would allow a versatile demarcation depending on geographic coverage and consensus among local stakeholders. However, this would require reaching a consultation-based consensus among the forest protection and development funds of the two provinces as well as the communities and ethnic minorities surrounding the park. With regard to sharing of PFES cost and benefit in the transboundary areas, the two provinces are on the same page, but VNFF has not recognized the issue. The first step regarding the PFES issue in transboundary areas is its recognition by the national authority, VNFF.

Source: Asian Development Bank (Independent Evaluation Department).

Other Assessments 29

101. The provinces that participated in TA 8592 were scattered geographically across the country. Despite the challenge, ADB’s Viet Nam Resident Mission played a leading role in convening provincial stakeholders to implement the project and in customizing it to local needs. ADB was flexible and responsive to the consultation requests and clarifications on project activities from the provincial governments. This enabled individual provinces to develop a PFES scheme that was suitable to their specific needs and conditions. Also, ADB provided value added at the design stage and quality assurance of project products during implementation. Based on the project experience, the PFES monitoring system was developed and is being applied across the provinces. ADBs’ performance is satisfactory.

C. Performance of Executing and Implementing Agencies

102. For TA 7377 and TA 8102, government ownership at national and provincial levels remains a critical concern for the project’s effectiveness and sustainability. Commonly, more active cooperation was needed between MARD and DARD and between MONRE and DONRE. Without such close cooperation, multisector engagement for development planning was not probable. As a result, the intended outcome—enhancing provincial authorities’ capacities for climate resilience—did not take place. MONRE and IMHEN should have been more proactive and more committed to playing a greater role in coordination to ensure DONRE’s engagement under the PPC. The performance of the governments and implementing agencies is assessed less than satisfactory. 103. For TA 8102, the intended outcome of mainstreaming bioengineering techniques into MARD’s program did not take place. However, this was attributed to MARD’s internal process for design standards. The efforts of implementing agencies such as DARD should be recognized for continuous demonstration in four different sites, site changes, and O&M implementation during the project. By placing more weight on the demonstration value of this project and the performance of the government institutions, especially the implementing agencies, is assessed borderline satisfactory. 104. For TA 8592, the FPDF in each of the three provinces demonstrated strong ownership of project activities and facilitated coordination and cooperation among all stakeholders. The continuity of FPDF members and their full commitment were important contributing factors to the success of the project. MARD and VNFF have consistently provided support for the project and been engaged in capacity building and streamlining of the PFES system for wider application in the country. The performance of the governments and implementing agencies is assessed highly satisfactory.

CHAPTER 5

Overall Assessment, Lessons, Issues, and Recommendations

A. Overall Assessment 105. This chapter provides the overall assessment of the TA projects. It highlights issues and lessons and provides recommendations derived from the evaluation. The overall assessments of the three TA projects are presented in Table 3. The summary of the evaluation findings for each TA project is presented in Appendix 1.

Table 3: Assessment of Individual Technical Assistance Projects

Criteria TA 7377 TA 8102 TA 8592 Relevance Effectiveness

Relevant Less than effective

Relevant Less than effective

Highly relevant Effective

Efficiency Less than efficient Less than efficient Efficient Sustainability Less than likely

sustainable Less than likely

sustainable Most likely sustainable

Overall assessment Less than successful Less than successful Successful ADB = Asian Development Bank, TA = technical assistance. Source: Asian Development Bank (Independent Evaluation Department).

106. The performance of the three TA projects differed significantly. Only one of them—TA 8592 for Improving Payment for Forest Ecosystem Service—is assessed successful. The other two projects are assessed less than successful. Nevertheless, each project deserves credit for having innovative features to meet location-specific needs: (i) a regional approach for development planning in the Mekong Delta region, (ii) bioengineering techniques for basic rural infrastructure in the northern mountainous region, and (iii) the development of a better PFES scheme in three provinces for wider application across the country. With significant buy-in and commitment from both the national and provincial governments, the innovative practices and approaches introduced by the TA projects can be replicated, sustained, and scaled up after project completion. ADB can build on these initiatives to create new TA projects that can be scaled up and ensure sustainability.

B. Lessons

107. To ensure their feasibility, adaptation measures should be developed and implemented by individual provinces on the basis of their specific climatic conditions, disaster preparedness, and development needs across sectors. Analysis and assessment of climate change impacts alone are insufficient for the development of effective adaptation measures. These have to be based on province-specific data and a high-quality analysis. In addition, climate change adaptation projects should be geared toward taking a regional approach and involve multisector planning. Taking advantage of the experience of TA projects requires a wider uptake of their outputs in other provinces and sectors in support of the country’s resilience to climate change.

Overall Assessment, Lessons, Issues and Recommendations 31

108. The involvement of local stakeholders early on is crucial to gain and maintain their ownership of project objectives and activities. It is important for project design to ensure the substantial inclusion of local government agencies in project management. Thus, project design should allow for their active participation in both preparation and implementation. The engagement of local stakeholders in project design also contributes to enhanced institutional capacity and the achievement of better performance. 109. A long-term O&M implementation plan is vital to ensure the durability of basic rural infrastructure. Prior to project completion, it is important to secure O&M resources and agreement among governments on O&M implementation arrangements. O&M measures for basic rural infrastructure should be instituted at the local level in order to engage local governments continuously in maintaining project assets. This also allows local communities to make use of their project experience and to continue regular monitoring of forest health and the condition of rural infrastructure. The continuous engagement of local governments and beneficiaries in O&M is only possible when adequate capacity and resources for this purpose are available, and again this has to be considered at the design stage.

C Issues

110. The inadequate commitment of MARD impeded the mainstreaming of bioengineering techniques in MARD’s rural infrastructure program. For the mainstreaming to occur, design specifications and standards should have been developed, together with relevant guidelines on when to use bioengineering techniques and for what types of basic rural infrastructure. However, efforts to mainstream the techniques did not take off during the project. More pilot demonstration subprojects under varying conditions are needed so that valid standards of bioengineering in basic rural infrastructure can be developed and replication can be undertaken. Enhancing government capacities is a long-term process that requires considerable resources and government commitment. 111. At the design stage, no long-term plan was developed to determine how project outputs would be maintained and scaled up. TA 7377 and TA 8102 lacked a mechanism for the expanded application and upscaling of their outputs. The engagement of provincial authorities in activities of these projects was limited. As a result, there was no uptake of the models, impact studies or potential adaptation measures by either ADB or national and provincial authorities.

D. Recommendations

112. ADB should consider the following recommendations when designing TA projects in the future:

(i) Ensure the involvement of local stakeholders early on in project preparation and management. This should help individual provinces develop effective adaptation measures that suit their climatic conditions, disaster preparedness, and development needs. Such active engagement in project management can be an effective way to strengthen local capacity. Wherever possible, TA projects should adopt a learning-by-doing approach for target provincial governments and local institutions. This should include arrangements for O&M both during and after project implementation. The impact of the potential long-term engagement of local governments should be considered in project design. This would provide an opportunity to discuss O&M funding preparations at the provincial level.

(ii) Encourage MARD to move forward with the mainstreaming of bioengineering approaches in its programs. One way for ADB to do this would be to require future basic rural infrastructure projects to use green infrastructure elements including bioengineering approaches. Mechanisms and incentives are also needed to facilitate active coordination and information sharing between national and provincial


governments. Climate change adaptation should be anchored in a multisector strategy. For this to occur, coordination among the Ministry of Planning and Investment, MARD, MONRE, and other key ministries, as well as with the provinces, should be strengthened.

(iii) Include upscaling activities and a mechanism for knowledge dissemination in project design. Future projects should include upscaling elements at the design stage, such as having demonstrations at different sites, putting in place mechanisms for dissemination beyond the project sites, and developing new design standards for bioengineering. In order to promote project efficacy, it is important to plan for the uptake and scaling up of its outputs. To share project experience and disseminate demonstration practices effectively, communication plans need to be established upfront in project design and their implementation ensured at the provincial and local levels.

Appendixes

APPENDIX 1: SUMMARY EVALUATION FINDINGS OF INDIVIDUAL TECHNICAL ASSISTANCE PROJECTS 1. This evaluation assesses the performance of each of the three technical assistance (TA) projects in terms of relevance, effectiveness, efficiency, and sustainability.

A. Climate Change Impact and Adaptation Study in the Mekong Delta (TA 7377)

2. Objective. The TA project was created to strengthen the capacity of provincial authorities to develop effective adaptation measures to protect agriculture production and livelihoods and thus guide future provincial development planning. The target project areas were Ca Mau and Kien Giang provinces in the Mekong Delta region. 3. Overall assessment. The evaluation assesses the TA project less than successful, which is not consistent with the rating provided by the TA completion report.

4. Relevance. The project conducted a modelling analysis to predict future climate conditions and documented an assessment of the impact of climate scenarios on natural, social, and economic systems (part A). Based on the analysis, adaptation options were developed for scaling up and for development planning of the target sectors, i.e., agriculture, energy, and transport (part B). The executing agency is a research institute, the Institute of Meteorology, Hydrology and Climate Change (IMHEN), and was tasked with part A of the project. IMHEN did not have the capacity to identify on-the-ground activities for adaptation measures and development planning in any of the target sectors. Nonetheless, the involvement of the provincial Department of Natural Resources and Environment (DONRE) and the provincial Department of Agriculture and Rural Development (DARD) was limited during implementation (part B). Considering the potential merits of linking the regional development planning initiative with climate change, TA 7377 is assessed borderline relevant. 5. Effectiveness. The project’s envisaged outcome was the improved capacity of the sector and provincial authorities to increase climate-resilience programs, plans, policies, and projects. The evaluation could find no evidence that the TA increased the institutional capacity. The project outputs could be considered to have been achieved but the quality was largely unsatisfactory. Only one output was delivered satisfactorily. The remaining four outputs were delivered but at a suitable quality. Appropriate adaptation measures were to be developed for potential scaling-up. However, none of the proposed projects was developed into actual adaptation measure activities. There was also inadequate coordination between IMHEN and the provincial governments. This resulted in the limited engagement of DONRE and DARD in project implementation and the lack of awareness of the project. TA 7377 is less than effective. 6. Efficiency. The project experienced significant implementation delays, being completed about 2.5 years later than planned. Several factors reduced its efficiency. Recruiting two consultants consecutively instead of in parallel caused the main implementation delay. In addition, lack of coordination between parts A and B generated inconsistencies in approach between the two parts. Also, having two separate consultancies led to the disruption of knowledge and difficulties in the transfer of the project to local governments. About 97% of the approved amount was utilized. The project is assessed less than efficient.

7. Sustainability. IMHEN was committed to climate modelling analysis (part A). However, part B needed to adequately engage the provincial agencies responsible for development planning and the target sectors. Most of the work was carried out by consultants with a national authority as the executing agency. The provincial agencies were not engaged in any substantial way in project activities. Therefore,

Summary Evaluation Findings of Individual Technical Assistance Projects 35

once the project was completed, no institution was empowered to act on the project’s materials and recommendations. TA 7377 is assessed less than likely sustainable.

B. Promoting Climate Resilient Rural Infrastructure in the Northern Mountain Provinces (TA 8102)

8. Objective. The project was created to mainstream effective climate resilient measures in the rural infrastructure program of the Ministry of Agriculture and Rural Development (MARD) by demonstrating the validity of bioengineering techniques (i.e., local vegetation-based engineering) to protect exposed earth surfaces.

9. Overall assessment. The evaluation assesses the TA project as less than successful, which is not consistent with the rating provided by the TA completion report.

10. Relevance. Attaining the mainstreaming goal required a review of existing engineering standards, subsequent changes to those standards, and the development of guidelines for the use of bioengineering techniques. The project outcome of mainstreaming proved to be unrealistic. First, it did not adequately anticipate the challenges associated with MARD approval procedure. Second, sharing responsibilities with UNDP under a co-financing arrangement contributed to the dilution of the linkage between outputs and outcome and thus impacted achievement of the outcome. The project design, including the outcome, should have been redesigned when this TA was detached from the loan project. However, the evaluation recognizes the project’s value in the demonstration of bioengineering techniques and their validity for potential innovative features. TA 8102 is borderline relevant. 11. Effectiveness. At evaluation, provincial DARD and DONRE acknowledged that the project had demonstrated the suitability and cost effectiveness of the bioengineering approaches in rural infrastructure including roads, river embankments, and irrigation structures. However, the project did not engage the local authorities substantially in project management. Developing four pilot sites was an initial step towards the mainstreaming goal. A draft set of design standards should have been prepared at least for the mainstreaming goal, but it did not take place. This in large part was attributed to the inadequate commitment of MARD, which is responsible for design standards. As a result, these techniques were spread across a limited geographic scale. The mainstreaming has yet to be realized. Although the project outputs were largely delivered, the outcome was not achieved. TA 8102 is assessed less than effective. 12. Efficiency. The project was extended twice and completed about 21 months after its original target date. The significant implementation delays were caused mainly by two factors. First, the project co-financing arrangement with UNDP resulted in a complex project management structure, though MARD was the executing agency for both components. Second, multiple levels of review and lengthy approval procedures under the Agriculture Projects Management Board contributed to the slow implementation. The project underestimated the process of developing guidelines and standards and obtaining approvals within MARD for the mainstreaming. The project is assessed less than efficient.

13. Sustainability. The demonstration of bioengineering techniques was favorably accepted by the local governments in the province. To mainstream the bioengineering techniques, MARD needed to sanction and develop design standards suitable for a range of conditions. A concern was the lack of a long-term maintenance plan and budget for the demonstration sites. The development of a manual would have helped the local people carry out O&M of the rural infrastructure, but it was never developed. Overall, the involvement of local institutions and the interaction with communes were quite limited. The inadequate engagement of the provincial governments limited the capacity building of the local authorities, making the potential for upscaling the techniques across the province minimal. The provincial staff did not have the opportunity to gain hands-on experience of managing the project, thus affecting any efforts for upscaling. No official documentation has been stored with DARD. The project would have

36 Appendix 1

benefited from appropriate implementing arrangements, especially the involvement of provincial government agencies and local project staff in project management. TA 8102 is assessed less than likely sustainable.

C. Improving Payment for Forest Ecosystem Service Implementation (TA 8592)

14. Objective. The TA project aimed to conduct analytical studies and demonstrate how to standardize and integrate payment for forest ecosystem service (PFES) at the provincial level, especially payment and accounting systems, into socioeconomic planning. The envisaged project outcome was that ecosystem values and payments would be appropriately assessed following PFES evaluation methodologies and integrated into the PFES implementation plans of the three provinces of Kon Tum, Lao Cai, and Thua Thien Hue. Key stakeholders in the provinces included ethnic minorities as forest owners, provincial forest protection and development funds (FPDFs), national parks, tourists, and enterprises.

15. Overall assessment. The evaluation assesses the project as successful, which is consistent with the rating provided by the TA completion report.

16. Relevance. The project design proved to be suitable for involving all stakeholders in forest management, facilitating a consultative process, and supporting the development of institutional capacity in the provinces. The national Viet Nam Forest Protection and Development Fund (VNFF) and the provincial funds (FPDF) were actively engaged in testing and rolling out the approaches and materials produced. The project was innovative in developing a mechanism for collecting PFES fees from the three sectors—tourism, aquaculture and industrial water supply—which were newly introduced under the project. The project featured extensive stakeholder consultations and the engagement of provincial and village governments, and communities. The project can be credited with gaining recognition to boost PFES implementation in the provinces including communities and enterprises. Given the TA strategic alignments, relevance of design, and innovative features, TA 8592 project is assessed highly relevant.

17. Effectiveness. The economic evaluations of FES under the project were integrated into the individual province’s 5-year PFES implementation plans (2016–2020). A PFES collection and disbursement system was adopted by the individual provinces and approved by the government. A nationwide approach to GIS-based forest monitoring has been rolled out. The project outputs were substantially achieved, and the outcome was achieved. The project had potential transformative effects for other provinces. The project is assessed effective.

18. Efficiency. The project was completed in the same year as scheduled. It had an efficient implementation arrangement that ensured the ownership of the executing and implementing agencies. The VNFF at the national level and the provincial agencies were fully engaged with the project. They had regular consultations, and their good coordination and timely communication resulted in smooth implementation. About 96% of the approved amount was utilized. The project is rated efficient.

19. Sustainability. Each agency responsible for the PFES program was fully involved in the project. Their involvement contributed to demonstrating the good practices of PFES implementation and was useful in expanding the PFES program nationwide. It also led to a high degree of acceptance and capacity development including GIS monitoring. All the materials produced by the project were so practical that VNFF proposed some of them to MARD for wider usage across the country. Key knowledge products were uploaded on the website of the Greater Mekong Subregion Environment Operations Center, a key implementing agency of an ADB regional TA in Greater Mekong Subregion. The project outputs have been fully utilized. Given that the project had the central government’s buy-in, the strong commitment of provincial governments, the engagement of local communities as FES payees, and the consensus of enterprises as payers FES, the project outputs and outcome are on the way to having an even wider impact. The project is most likely sustainable.

APPENDIX 2: IMPLEMENTATION OF THE PAYMENT FOR FOREST ECOSYSTEM SERVICE SCHEME BY PROJECT PROVINCES

1. This appendix presents trends in the implementation of the payment for forest ecosystem service (PFES) scheme in the three project provinces of Lao Cai, Thua Thien Hue, and Kon Tum, visited by the evaluation mission in August 2019. Under PFES, forest ecosystem service (FES) users are required to make payment to FES providers, meaning FES payers and FES payees exist in the scheme. The technical assistance (TA) project to Viet Nam for Improving Payment for Forest Ecosystem Service Implementation (TA 8592) was implemented from September 2014 to December 2016. All data and information in the appendix were provided by the forest protection and development funds (FPDFs) of the provinces.

A. Payment for Forest Ecosystem Service Implementation Status in Lao Cai Province

2. Lao Cai province has developed the tourism, construction, and agriculture sectors. Geographically, Lao Cai has been a major conduit for trade between Viet Nam and Yunnan province of the People’s Republic of China. The town of Sa Pa is a tourist destination for its mountainous landscape of rice terraces, trekking, and cultural diversity because of its ethnic minorities. The province has taken specific actions in recent years to foster tourism, e.g., the cable car for viewing the rice terraces started in 2016. 3. In terms of payment for forest ecosystem service (PFES), the province is considered one of the most suitable provinces for piloting PFES across multiple sectors because (i) mountainous forests occupy 33% of the total area of the province, and (ii) there is a good mix of industries that have readily identifiable beneficiaries (payers) and providers (payees) of FES. Under the project, the FES payers are enterprises in the aquaculture, tourism, and industrial water supply sectors as well as tourists. The PFES mechanism has helped to generate new revenue sources for FES providers, which were not in place before the project. In Lao Cai province, it increased tenfold from about VND10 billion in 2012 to VND103 billion in 2018 (Table A2.1).

Table A2.1: Payment for Forest Ecosystem Service Revenue in Lao Cai Province (VND)

Users of forest ecosystem service 2012 2013 2014a 2015 2016 2017 2018

Industrial Production 38,596,423 161,862,201 271,299,673

Aquaculture - - - - 35,843,500 32,570,000 -

Tourism 291,819,088 454,013,936 154,076,753 715,072,964 1,146,198,341 807,334,593 4,304,846,525

Water 418,713,840 584,696,520 472,184,400 613,830,440 641,158,680 820,776,000 683,981,945

Hydropower generation

9,321,502,224 16,813,572,554 32,101,436,752 52,490,739,100 51,337,517,720 55,237,275,707 97,581,450,312

Total revenue 10,032,035,152 17,852,283,186 32,727,698,115 53,819,643,159 53,199,315,461 57,059,819,266 102,841,579,894 a Technical assistance started in 2014. Source: Lao Cai forest protection and development fund.

38 Appendix 2

4. The FPDF plays a key role in PFES implementation at the provincial level. Its technical staff have the capacity to identify maps of the actual forest areas and carry out annual checks to ensure compliance with the requirements for forest maintenance. The FPDF is using the web GIS process developed under a TA project in the mapping and monitoring of forests. 5. PFES has gained much recognition in the province. The project utilized a wide range of dissemination tools including leaflets on PFES policy, quarterly newsletters, the broadcasting of PFES information on television, an audio on the rights and responsibilities of PFES providers. The value of the project and its benefits have been recognized by various stakeholders including ethnic minorities in remote areas. This contributed to increased participation of forest owner households in PFES scheme (Table A2.2).

Table A2.2: Participation of Communities (as payees) in Lao Cai Province

Item 2012 2013 2014a 2015 2016 2017 2018

Number of households in PFES b 9,324 11,765 12,651 13,565 14,691 16,957 17,008

PFES = payment for forest ecosystem service. a Technical assistance started in 2014. b Number of households includes forest owners of households; individuals who are members of forest community management boards; and household groups. Source: Lao Cai forest protection and development fund.

6. In the case of Cat-Cat village of Sa Pa where ethnic minorities live, all village households have participated in PFES since 2011. About 35% of FES revenue allocated under the village chief is used for forest protection activities and regular monitoring. The remaining 65% is directly paid to each household. They invest the revenue in purchasing gas stoves, thus making a significant contribution to reducing the pressure on forests for firewood. The PFES implementation has contributed to decreased tree cutting and frequency of fires as well as improvements in water quality from the forests (Table A2.3).

Table A2.3: Forest Incidents and Change in Forest Coverage in Lao Cai Province

Incident 2012 2013 2014a 2015 2016 2017 2018

Illegal logging 24 12 5 8 17 11 11

Forest fire outbreaks 37 6 7 12 21 2 0

Forest coverage (%) 51.3 52.01 52.76 53.3 53.5 53.8 54 a Technical assistance started in 2014. Source: Lao Cai forest protection and development fund.

Implementation of the Payment for Forest Ecosystem Service Scheme by Project Provinces 39

B. Payment for Forest Ecosystem Service Implementation Status in Lao Cai Hoang Lien National Park 7. Hoang Lien National Park is an area (18,602 hectares [ha]) of high biodiversity significance with a large area of primary (i.e., old growth) mountain rainforest. The park has three roles in PFES: (i) recipient of PFES funding from the Lao Cai FPDF for forest protection; (ii) beneficiaries for forest ecosystem service from tourism industries; and (iii) administrator of the fund distribution for communities. The park has implemented PFES since 2012 and received funds from Lao Cai forest protection and development fund. The PFES under the park management is restricted to the special forest area of the park. The PFES revenue of the park is shown in Table A2.4.

Table A2.4: Forest Ecosystem Service Revenue in Hoang Lien National Park (VND)

2010 2011 2012 2013 2014a 2015 2016 2017 2018

150,705,000 3 99,336,000 548,250,000 680,340,000 3,081,400,000 7,114,830,000 7,240,280,000 6,321,040,000 5,244,180,000 a Technical assistance started in 2014. Source: Lao Cai Hoang Lien National Park.

8. In terms of being beneficiaries for FES, the cable car company paid directly into the provincial fund prior to 2018. Currently, under Decree 156, the payment is made directly to the park. Tourists visiting the national park are charged entry fees.1 Other tourism fees are for tourist guides, climbing Fansipan mountain, and camp and lodge stay in the park.2 Of the revenue, 80% goes to the provincial government and 20% to the park’s center for environmental education. 9. Administratively, Hoang Lien National Park belongs to Lao Cai province. Geographically, the park is located across two provinces, Lao Cai and Lao Chai. Out of the total coverage of the park (18,602 ha), about 7,000 ha belongs to Lao Chai province. The unit cost of PFES is VND600,000 per ha per year. The park is entitled to receive about VND11.2 billion ($485,000) for PES implementation. The park management has received PFES from Lao Cai province but not from “Lao Chai” province, the adjoining province. This partly explains that the FES revenue of the park (VND5.2 billion in 2018) is less than 50% of the entitled amount of VND11.2 billion (Table A2.4). This is a transboundary forest management issue. 10. Among PFES revenue received from the fund, the park keeps 10% for administration management and allocates that for monitoring and protection activities (e.g., patrolling for forest fires, illegal logging, and poaching). The remainder is dispersed to 23 community groups for the benefit of each village head and family unit. The TA also made significant improvements in reducing forest fire and illegal logging, including non-timber forest products (Table A2.5).

1 Lao Cai forest protection and development fund. 2 In 2015, there were 130,000 visitors to the park and revenue was VND7.3 billion. Source: Viet Nam Administration of Tourist. http://vietnamtourism.gov.vn/index.php/items/19732

(accessed 10 November 2019)

http://vietnamtourism.gov.vn/index.php/items/19732

40 Appendix 2

Table A2.5: Forest Incidents and Change in Forest Coverage in Hoang Lien National Park

Incident 2010 2011 2012 2013 2014a 2015 2016 2017 2018

Illegal logging 1 0 1 0 2 1 1 0 0

Forest fire outbreaks 1 0 1 0 2 1 4 0 0

Forest coverage (%) 81.7 81.7 81.7 81.7 81.7 81.7 85.87 85.87 85.87 a Technical assistance started in 2014. Source: Lao Cai Hoang Lien National Park.

11. The FPDF has identified several important benefits from the TA and the PFES scheme: (i) the FPDF staff work closely with the villagers to develop and monitor the management plan; (ii) PFES has significantly improved the revenue of the park; and (iii) individual communities have significantly improved the behaviors of forest owners (including ethnic minorities) towards management and conservation of forests in the park.3 12. Overall, the FPDF is confident that the PFES model adopted in Lao Cai has significantly improved ecosystem management. The case of Lao Cai can provide insights for the development of more effective PFES implementation in the future. One specific insight relates to benefit sharing and management of FES among local stakeholders, i.e., FES payers (enterprises and tourists in Lao Cai), FES payees (the park under FPDF and communities around the park), and FPDF responsible for administration and implementation of the FES program.

C. Payment for Forest Ecosystem Service Implementation Status in Thua Thien Hue Province

13. The province currently has a large area of forest plantings, with many species, such as Acacia, being introduced. There are three sources of revenue: hydropower (90%), water supply for industrial use (10%), and tourism (less than 1%). PFES revenue increased significantly with the project. In Thua Thien Hue province, it increased from about VND10 billion in 2013 to VND27 billion in 2018 (Table A2.6).

Table A2.6: Forest Ecosystem Service Revenue in Thua Thien Hue (VND)

Users of FES 2012 2013 2014a 2015 2016 2017 2018

Hydropower 7,095,885,000 17,218,774,000 47,933,625,000 24,147,363,000 38,976,629,000 25,004,710,000

Water supply 791,290,000 3,077,647,000 1,683,456,000 1,751,267,000 1,823,688,000 2,419,164,000 2,494,015,000

Total 791,290,000 10,173,532,000 18,902,230,000 49,684,892,000 25,971,051,000 41,395,793,000 27,498,725,000

FES = forest ecosystem service. a Technical assistance started in 2014. Source: Thua Thien Hue forest protection and development fund.

14. In terms of the breakdown of the FES revenue, 76% is used for forest protection and patrolling (including 10% administration and 5% contingency fund) and 24% is used for tools, uniforms, and meetings. In the province, no money goes directly to households as the payment is

3 PFES of its surrounding community lands (2,172 hectares) were managed by households. There are 23 community groups of ethnic minorities with 2,325 households.

Implementation of the Payment for Forest Ecosystem Service Scheme by Project Provinces 41

entirely based on forest protection activities and forest condition. An issue identified is that the fee paid to the community is only enough to fund limited patrolling. At the moment, the daily rate paid to the villagers is less than what they can achieve in other areas. The villagers who regularly participate in patrolling agreed with this view. Currently, a carbon sequestration study pilot is being carried out in this province. It has been indicated that a new revenue source, potentially from carbon sequestration credits, needs to be operationalized. 15. The TA contributed to improved funding and significantly enhanced the awareness of villages involved in forest management. Increased households as forest owners joined in PFES implementation (Table A2.7). The TA also enhanced the ability of village communities to undertake annual planning of forest management including forest area, monitoring, patrolling, and training.

Table A2.7: Participation of Forest Ecosystem Service as Payees

Item 2012 2013 2014a 2015 2016 2017 2018

Number of household b 0 0 3,996 4,493 4,557 4,687 4,741 a Technical assistance started in 2014. b Number of households includes forest owners of households; individuals who are members of forest community management boards; and household groups. Source: Thua Thien Hue forest protection and development fund.

D. Payment for Forest Ecosystem Service Implementation Status in Kon Tum Province 16. The annual revenue from forest protection in Kon Tum province in 2018 was approximately VND272 billion ($11.7 million). The main source of finance is hydropower, with a small component for town water supply. About 90% is distributed to forest owners and 10% used for administration. The fund indicated that Decree 156 simplified the legal process, which they were strictly implementing. PFES revenue increased significantly with the project. In Kon Tum province, it increased from about VND161 billion in 2012 to VND272 billion in 2018 (Table A2.8).

Table A2.8: Forest Ecosystem Service Revenue in Kon Tum Province (VND)

Item 2012 2013 2014 2015 2016 2017 2018

Hydropower generation a

Managed by province

19,996,937,600 5,938,822,380 17,250,007,520 28,536,118,324 16,787,533,616 21,679,581,348 38,917,967,110

Managed by VNFF

141,000,000,000 124,000,000,000 195,000,000,000 127,340,909,000 85,590,908,000 146,389,382,000 233,652,301,000

Total revenue 160,996,937,600 129,938,822,380 12,250,007,520 155,877,027,324 102,378,441,616 168,068,963,348 272,570,268,110

VNFF = Viet Nam Forest Protection and Development Fund. a There are two payment options for hydropower generation: (i) in the case of hydropower water from the catchment area that is managed by two provinces, a hydropower

company pays forest ecosystem service (FES) to VNFF first. Then, VNFF transfers the revenue to the FPDFs of the two provinces; (ii) if the water from the catchment area is managed by one province, a hydropower company pays FES to the FPDF. Which option is adopted depends on the location of the catchment area.

Source: Kon Tum forest protection and development fund.

42 Appendix 2

17. Previously, during 2012-2015, forest owners participating in PFES signed the PFES contracts with individual households. During 2016-2018, the forest owners changed the method to enroll groups of households to implement PFES. A representative of each group signed the contract with FPDF. The Kon Tum FPDF found this group approach more effective and increased the number of PFES participation (Table A2.9).

Table A2.9: Participation of Forest Ecosystem Service as Payees in Kon Tum Province

Item 2012 2013 2014a 2015 2016 2017 2018 Number of households in PFES 2,830 6,790 7,917 8,698 5,150 5,060 5,005

Households with forest assigned by the state 1,218 2,147 3,440 3,642 3,627 3,598 3,517

Households signed contracts with forest owners 1,612 4,643 4,477 5,056 1,523 1,462 1,488

Number of communities in PFES … 23 65 86 175 247 342

Communities with forest assigned by the state … 19 22 22 21 34

Communities signed contracts with forest owners 23 46 64 153 226 308

Number of participated group of households … 24 24 29 160 178 194

Groups of households signed contract with forest owners 24 24 29 160 178 194

… = data not available, PFES = payment for forest ecosystem service. a Technical assistance started in 2014. Source: Kon Tum forest protection and development fund. 18. The guidelines produced by the TA project were useful in helping the commune people’s committees decide how payments should be made and distributed. The province, with assistance from the provincial FPDF, produces an annual plan, which includes forest area, patrolling plan, purchase of tools and equipment, training, and monitoring. Although a 5-year action plan was prepared under the TA, it has not yet been replicated at the commune level. 19. During 2013–2016, the project for national forest investigation and inventory provided a set of data and the national data was expected to be available a little later. Around then, the project for Development of Management Information System for the Forestry Sector in Viet Nam–Phase II (FORMIS II) developed a software system to update forest coverage data based on the maps of the national forest investigation and inventory. During implementation, only Kon Tum province had the data on forest changes and inventory on the server of FORMIS II.